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Leaner workforce cuts costs for Cognizant, powers quarterly beat – Source Reuters Tech News

(Reuters) – Cognizant Technology Solutions Corp beat Wall Street estimates for quarterly profit and revenue on Wednesday, as the information technology company brought down costs by trimming its workforce.

Shares of the company were up 2%, after gaining nearly 5% so far this year.

The company also said Vice Chairman Francisco D’Souza, who co-founded Cognizant and served as the chief executive officer from 2007 to 2019, would step down from the role.

Cognizant warned of job cuts in October to invest in growth areas such as cloud and internet of things and cushion the impact from a decline in spending by its financial customers, which the company expected to continue through the second half of 2019.

In a cloud push, it recently acquired Code Zero Consulting and French operations of EI-Technologies.

Chief Financial Officer Karen McLoughlin said in the earnings call the company expects restructuring charges at the end of 2020 to be at the low end of the $150 million to $200…

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Source Reuters Tech News

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