Cognizant Technology Solutions has announced plans to reduce around 1% of its global workforce, affecting more than 4,000 employees, as part of a broader restructuring effort driven by slowing demand and increasing automation pressures. The development comes after the company revised its full-year outlook downward, according to reports.
As part of this transition, Cognizant has launched a new initiative called Project Leap, a transformation programme focused on boosting investments in artificial intelligence, expanding integrated digital services, and upskilling its workforce. The company estimates that the programme will cost between $230 million and $320 million, including $200 million to $270 million in severance and other employee-related expenses, while expecting potential savings of up to $300 million this year.
Although the company has not disclosed the exact number of employees impacted, leadership indicated during its post-earnings call that more than 20,000 freshers will be hired this year. This suggests that the job cuts are likely to be concentrated in mid-level and non-core roles rather than entry-level positions.
Despite the planned reductions, Cognizant’s overall headcount still rose by about 6,000, reaching 357,600 employees as of March 2026. This marks the second major restructuring under CEO S. Ravi Kumar, who took charge in January 2023. Earlier, in May 2023, the company had laid off around 3,500 employees in non-billable roles.
The latest move reflects a broader trend in the tech industry, where companies are increasingly reshaping their workforce structures to align with AI-driven operations and cost optimization. April, in particular, saw widespread layoffs across the sector, with firms such as Oracle, Snap Inc., and Meta Platforms also undertaking workforce reductions as part of their shift towards greater automation and AI investment.
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