Cognizant Merges Engineering Units in AI-Focused Restructuring
Cognizant is carrying out what is arguably its largest restructuring in nearly four years, merging its application development, digital engineering and quality engineering practices into one software engineering group, Mint reported based on internal memos, as published on TradingView.
The new group, which began taking shape on October 26, is organized into industry delivery units, a standalone application services unit and "frontier capability units". The frontier units will build AI-native software products using models from Anthropic, OpenAI and Google's Gemini. The application services units will cover mainframes, application management and testing.
Cognizant tied the overhaul to clients' demand for better returns on AI. "The gap between AI investment and proportionate returns is the defining challenge enterprises face today," one memo said. It is the biggest reorganization under CEO Ravi Kumar, who took charge in January 2023.
Cognizant ended 2025 with $21.1 billion in revenue, up 7%, and nearly three quarters of its workforce is in India.
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