Cognizant Intends to Sell Office Spaces in Hyderabad & Bangalore

Multinational IT Giant Cognizant is planning to sell its office assets in Hyderabad and Bengaluru as part of their strategic initiatives. This decision reflects Cognizant's proactive response to the evolving landscape of work and workplace preferences. In view of aligning with the hybrid work model and its widespread adoption of flexible work arrangements, the company is strategically reassessing its real estate portfolio to optimize operational efficiency.

The company plans to divest its 10-acre campus in Gachibowli, Hyderabad, and a 14-acre campus in Siruseri, Chennai, aligning with its cost-cutting restructuring plan to save $400 million over two years, including vacating 11 million square feet of office space. 

As part of a cost-cutting initiative, the company aims to save $400 million over two years, including vacating 11 million square feet of office space. This move aligns with the broader restructuring plan, indicating a significant shift in Cognizant's real estate portfolio.

The move to sell prime office properties in Hyderabad and Bengaluru signifies Cognizant's commitment to adaptability in the face of changing workforce dynamics. As organizations worldwide embrace hybrid work models, Cognizant is leveraging this opportunity to streamline its physical footprint while ensuring continued effectiveness in delivering cutting-edge technology solutions.

The company has already given up 1.15 million square feet of office space in Chennai and renegotiated a lease in Hyderabad from 1.5 million sqft. to 1 million sqft. for an upcoming property.

The company aims to align with broader industry trends, where companies are reimagining their real estate strategies to accommodate the preferences of a modern and dynamic workforce. Its decision is not merely a real estate transaction but a strategic response to the future of work, demonstrating the company's agility and commitment to staying at the forefront of workplace innovation.