Cognizant to invest in ChatGPT-like AI tools after laying off 3500 employees By- Techknowledge on May 7, 2023
Cognizant CEO has confirmed that the company will begin contributing in generative AI. The news comes after company declared its plans to eliminate 3500 workers or one per cent of its workforce.
In Short
- Cognizant to presently contribute in generative AI tools like ChatGPT, CEO Ravi Kumar, who has succeeded Brian Humphries has confirmed.
- Kumar the new CEO of Cognizant, has said Cognizant is as of now testing unused technology called "generative AI".
- Cognizant will lay off 3500 employees in a bid to cut costs.
Cognizant to presently contribute in generative AI tools like ChatGPT, CEO Ravi Kumar, who has succeeded Brian Humphries has confirmed. The news comes after the company confirmed that it'll end around 3500 workers or one per cent of its workforce. Cognizant also confirmed that it'll closed a few office spaces in order to cut costs during the challenging times the IT sector has been facing.
As per Economic Times, Kumar, the new CEO of Cognizant, has said Cognizant is right now testing new technology called "generative AI" that can speed up the work of their employees in different ranges such as consulting, design, engineering, and operations. They trust to eventually double their employees' efficiency by utilizing this technology.
"The tech trend on everyone’s mind is generative AI with recent breakthroughs offering the potential to fundamentally transform our clients’ businesses and increase our own efficiency," CEO Ravi Kumar said during the post-earnings call.
Kumar further added that they are investing more in generative AI. They have a handle called the "AI accelerator" which includes working with clients in extraordinary situations to find the most important ways to utilize AI, and rapidly making test versions of solutions to undertake out within the field.
"We have conducted ideation sessions with over 30 clients and are presently working to industrialize solutions to their common challenges. We believe generative AI will revolutionize the technology services industry, making higher rates of productivity and driving greater prominence for computer program and data engineering expertise,” he was quoted by ET as saying.
Layoffs at Cognizant
Only a couple of days ago, Kumar confirmed that the layoffs are going to take put within the company.He said that the affect on employees will be felt over corporate functions and non-billable overheads. There will be a structural shif move
in real estate costs since as it were 10-15 per cent of the workforce in each company in India comes to workplaces, and 30-40 per cent of Indian IT workers are found in level II and III cities and have not returned. Kumar feels that it is essential to create social capital in these cities. The layoffs in Cognizant are happening as a result of a two-year rejig programme.
Cognizant plans to spend $200 million to cover costs related to laying off workers. These costs are mainly for non-billable and corporate personnel and are expected to happen mostly in 2023.
