Cognizant may cut 12,000 to 15,000 jobs globally under Project Leap

Cognizant may eliminate between 12,000 and 15,000 jobs globally under a restructuring initiative known as Project Leap, signalling another major workforce reset across the global IT services industry.

Most of the potential layoffs are expected to affect employees in India, where the Nasdaq-listed technology services company has the majority of its workforce.

The company has not officially confirmed the number of job cuts. However, on 29 April, Cognizant said it expects to incur between $230 million and $320 million in severance-related costs as part of Project Leap.

India expected to bear the brunt of restructuring

Cognizant employs more than 357,000 people globally, including over 250,000 workers in India.

Sources quoted in the report said the estimated scale of layoffs is based on projected severance payouts and average employee compensation levels across regions.

According to the calculations referenced by Moneycontrol:

• Average annual salary in India is estimated at around Rs 15 lakh
• Typical severance payouts are estimated at roughly six months of salary
• Estimated severance cost per employee stands near Rs 7.5 lakh
• A substantial portion of the restructuring budget could therefore impact around 12,000 to 13,000 India-based employees

The report noted that the figures remain estimates and could change depending on how the restructuring programme is ultimately implemented.

Shift away from traditional IT workforce structures

The possible job reductions come as IT services companies reassess operating models amid rising automation and increasing use of artificial intelligence tools.

Industry executives cited by India Today said clients are becoming less willing to pay for large junior-heavy teams or training programmes for fresh graduates.

That shift is weakening the long-standing pyramid structure traditionally used across outsourcing and IT services firms, where large numbers of entry-level employees support smaller senior management teams.

Cognizant chief executive Ravi Kumar S said the company is moving towards what he described as a “broader and shorter pyramid” structure.

According to the report, Kumar said the changes form part of a wider global programme that will affect multiple parts of the organisation.

The revised model is expected to combine digital tools, automation systems and human workers more closely as companies adapt to AI-driven service delivery.

AI and automation reshape the IT services sector

The reported restructuring reflects wider changes sweeping through the technology services industry as companies face slower client spending and rising pressure to improve productivity.

Across the sector, firms are investing more heavily in automation platforms and AI-enabled systems while attempting to streamline costs and simplify workforce structures.

Key numbers linked to Project Leap

• Potential global layoffs: 12,000 to 15,000 employees
• Estimated severance costs: $230 million to $320 million
• Cognizant global workforce: More than 357,000 employees
• Employees based in India: Over 250,000
• Estimated India impact: Around 12,000 to 13,000 roles, based on report calculations

The latest development places Cognizant among a growing list of technology companies reassessing workforce requirements in response to AI adoption and changing client expectations.

For India’s IT sector, which remains one of the country’s largest private employers, the reported cuts also highlight mounting pressure on traditional outsourcing models as automation increasingly replaces routine and support-heavy work.

While Cognizant has yet to formally announce workforce numbers tied to Project Leap, industry observers are expected to closely watch how the restructuring unfolds in the coming quarters.