On July 25, 2023, Cognizant announced that it was renewing and growing its partnership with the biopharmaceutical firm Gilead Sciences. Gilead’s operations will be more efficiently run as a result of the $800 million extended partnership, which will also hasten its digital transformation.
In accordance with the contract, Cognizant will oversee Gilead’s global IT infrastructure, applications, and advanced analytics while utilizing generative artificial intelligence (GenAI) and AI automation to boost customer service and manufacturing efficiencies.
Although this expansion marks the beginning of a new phase in Cognizant and Gilead’s collaboration, it also coincides with significant personnel-related developments within Cognizant. The company disclosed that this program would have an effect on its 350,000-plus workforce, resulting in the layoff of about 3,500 corporate and non-billable employees. Approximately 1% of Cognizant’s entire workforce is represented by this.
While the change is unfortunate for the affected employees, it highlights the company’s commitment to optimizing its workforce in order to support its shifting business priorities and strategic goals. Cognizant strives to keep its workforce adaptable, aggressive, and well-positioned to provide value to its clients as it enters into significant deals.
The decision reflects Cognizant’s efforts to grow its IT services business while maximizing the efficiency of its workforce and bringing it in line with its shifting business priorities.