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Cognizant September quarter profit rises 4% to $497 million, to cut nearly 12,000 jobs

The adjusted operating margin was 17.3 per cent, compared with 18.5 per cent in the year-ago quarter.

ETMarkets.com|
Oct 31, 2019, 10.25 AM IST
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The firm projected CC revenue growth in the range of 2.1-3.1 per cent YoY for the December quarter.
NEW DELHI: US-based Cognizant on Thursday reported 4.19 per cent year-on-year (YoY) rise in net profit at $497 million. The IT major had posted $477 million profit in the corresponding quarter last year.

In a post-earnings conference call with analysts, the New Jersey-headquartered company said it would lay off 10,000-12,000 mid-to-senior employees from their current roles, and reskill and redeploy about 5000 of those impacted.

The news came as the firm projected CC revenue growth in the range of 2.1-3.1 per cent YoY for the December quarter. For the full year, it expects revenue growth in the range of 4.6-4.9 per cent in constant currency terms.

For the September quarter, revenues stood at $4.25 billion, up 4.2 per cent YoY. In constant currency (CC) terms, the revenue growth came in at 5.1 per cent, the company said in a release.

The digital revenue growth came in the mid-20 per cent range and represented over 35 per cent of the total revenue, the firm said.

The adjusted operating margin was 17.3 per cent, compared with 18.5 per cent in the year-ago quarter.

The number of employees as of September 30, 2019 stood at approximately 289,900, up from approximately 288,200 as of June 30, 2019.

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