Is Your City Next? Cognizant Shifting 25,000 New Jobs to India’s Tier-2 Hubs

In a significant recalibration of its Indian operations, IT major Cognizant has seen its headcount in Tamil Nadu decline by approximately 10,000 employees over the past year. 

The workforce at its primary delivery centers in the state dropped from 81,000 to roughly 71,000, signaling a strategic pivot away from high-cost metropolitan hubs toward emerging “Tier-2” cities.

The Great Migration to Emerging Hubs

The reduction in Chennai—long considered Cognizant’s operational heart—is being offset by aggressive expansion in cities like Indore, Bhubaneswar, Visakhapatnam, and Kochi. 

This shift is driven by stronger digital penetration, lower operational costs, and a growing pool of skilled professionals in these regions. 

Notably, Coimbatore remains a resilient secondary hub within Tamil Nadu, maintaining a steady workforce of about 16,000.

Parallel to this, Cognizant is reducing its physical footprint in Chennai. 

The company’s office space in the city declined from 8 million to 7 million square feet recently, following the high-profile ₹612 crore sale of its 13.6-acre Thoraipakkam property last year.

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Cognizant Hiring Pivot: Focus on “Bottom of the Pyramid”

Despite the localized decline in Tamil Nadu, Cognizant is not in a hiring freeze. Under CEO Ravi Kumar S, the firm is implementing a “broader pyramid” strategy. 

This involves hiring a record number of freshers and school graduates to handle tasks traditionally managed by mid-level associates, empowered by generative AI tools.

For 2026, the company plans to increase its fresher intake by 20%, aiming to recruit between 24,000 and 25,000 graduates. 

A cornerstone of this expansion is a new ₹1,583 crore campus at Kapuluppada IT Hills in Visakhapatnam.

This project will generate 8,000 jobs over the next three phases.

Economic and Political Implications

The moderation of IT jobs in Chennai will likely become a focal point in upcoming state discussions.

Historically, this region has relied on tech giants for large-scale employment.

However, Cognizant maintains that India remains central to its delivery model, accounting for nearly 90% of its total global workspace.

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