Iowa Governor Kim Reynolds addressed fears of state IT workers losing jobs due to a transition to Amazon Web Services and Cognizant. While 200 workers were notified of termination, Cognizant has guaranteed job offers to Iowans.
Cognizant CEO Ravi Kumar S. criticized the use of 'AI tokens' as a productivity metric, calling it misleading. He believes companies should focus on outcomes and that AI will create more jobs, reshaping organizational structures by shrinking middle management.
Cognizant reported a 0.1% decline in Q1 2026 net profit to $662 million amid tepid demand, while revenue grew 5.8% YoY to $5.4 billion, beating forecasts. The company announced Project Leap, a workforce restructuring initiative to integrate AI efficiencies, with severance costs estimated at $230-320 million. Cognizant is acquiring US-based Astreya for $600 million and plans to hire over 20,000 freshers in 2026.
Cognizant announced the acquisition of AI infrastructure firm Astreya for $600 million, its third-largest purchase after Trizetto and Belcan. The deal comes as the company launches Project Leap, a global restructuring programme costing $230-320 million, with $200-270 million in severance expenses that could affect thousands of roles over eight months, including in India. CEO Ravi Kumar cited a projected $6.7 trillion AI data centre infrastructure buildout between 2025-2030 as the strategic rationale. March quarter revenue rose 5.8% to $5.4 billion.
