Cognizant, one of the largest IT services companies in the world is under scrutiny after reports that up to 15,000 employees could be laid off globally (India will likely take a big chunk of those jobs).
The proposed workforce reduction is part of the company’s restructuring initiative Project Leap which seeks to transform its business model through AI, automation, digital capabilities and operational efficiency.
Thousands of IT professionals (mostly in India where Cognizant has one of its largest employee bases) are worried about this development. Though the company has not officially said how many people will get laid off exactly (reports published in May 2026 said between 12,000 and 15,000 positions worldwide would be affected), it is known that many thousands of IT professionals have been impacted by the news.
Moneycontrol reported that people familiar with the development said Cognizant was looking to cut between 12,000 and 15,000 jobs as part of its global restructuring programme. Most of these cuts were expected to come from India.
The estimate was made after the company announced Project Leap on April 29, 2026 and said it expected restructuring costs of $230 million to $320 million (of which $200 million to $270 million would go towards employee severance and other personnel expenses; rest for other restructuring activities). It did not give an official target of employee reduction in its initial announcement.
Cognizant’s large presence in India makes the reported restructuring particularly relevant for the country’s technology employment market. Cognizant had a global workforce of about 357,600 employees at the end of March 2026 (more than 250,000 of them were based in India). Any large-scale workforce restructuring would therefore impact Indian technology professionals significantly.
Bengaluru, Chennai, Hyderabad, Pune, Kolkata and other major IT centres could be on everyone’s radar as employees and industry watchers assess the potential impact of the programme. How many employees might be affected in individual cities or business divisions has not been made public yet.
What is Project Leap? Why is Cognizant restructuring its workforce?
Project Leap is part of Cognizant’s broader business transformation programme that prepares the company for the next phase of technology services industry growth. Productivity improvement, AI capabilities expansion, digital platforms and partnerships investment and workforce structure optimisation are some of its areas of focus.
Traditionally IT services business model has been based on large teams of employees working on software development, maintenance, testing and customer support. But as AI adoption increases, how these services are delivered is changing companies can automate several tasks previously done by large teams.
Cognizant CEO Ravi Kumar S said the company is moving towards a broader and shorter workforce pyramid human expertise mixed with digital labour. This means that it wants to get rid of unnecessary organisational layers but also build specialised technology capability.
Clients want faster project delivery, productivity and technology-driven solutions rather than just paying for large teams of IT professionals so IT services companies are re-thinking their workforce needs and business strategies.
The restructuring is also driven by the rise of artificial intelligence across the global technology industry. Generative AI tools are now used for software coding, testing, documentation, data analysis and customer service operations.
These changes are changing what IT companies need from employees and putting pressure on traditional service delivery models as well companies want employees with skills in AI engineering, cloud computing, cybersecurity, data science and digital transformation. Professionals doing mostly repetitive or routine technology roles could be hit harder as automation spreads.
Why Could India Face the Biggest Impact?
India is very important to Cognizant because a large chunk of its global workforce is based in India. The company’s large delivery centres in Bengaluru, Chennai, Hyderabad, Pune, Kolkata and other cities serve international clients in banking, healthcare, insurance, retail and technology sectors.
It was reported that India could contribute 12000-13000 jobs (indicative calculation) out of the global job cuts but not an official target for the region.
The estimates were supposedly based on expected severance costs and assumptions about salaries across countries. Employee compensation in India is generally lower than in the US and several European markets so the same restructuring budget could apply to more Indian employees but the final impact would depend on salary levels, employee tenure, severance policies, business requirements and local employment laws etc.
Cognizant’s workforce and Project Leap plans there is one important thing to note when looking at the layoffs reported: In its latest third quarter 2026 financial results Cognizant said that as of September 30, 2026 it had a total workforce of 359,900 employees (up 3,200 from June and up 10,100 from September 2025) and lowered its projected total Project Leap costs from $230 million-$320 million to $180 million-$250 million.
This means that we should not treat the implementation of the programme and workforce impact as a confirmed 15,000 person reduction (Cognizant hasn’t publicly confirmed that number).
It has also hired fresh graduates and invested in emerging technology skills. That’s an important distinction because in the current IT employment environment workforce restructuring does not mean companies are stopping recruiting altogether businesses are changing what roles they hire for (employees who can work with AI tools and deliver specialised technology solutions, for example). Cognizant’s transformation could therefore be a combination of workforce reductions, employee redeployment, reskilling and new recruitment.
What Does This Mean for IT Employees?
The reported restructuring has worried IT employees (especially those in traditional technology services and support functions). Employees may need to learn new skills (AI, ML, cloud platforms, cybersecurity, data engineering and automation) to meet changing business needs.
For fresh graduates it also shows that technology specialisations need to be chosen accordingly entry-level recruitment continues across the IT industry but companies are looking for candidates who can work with modern development tools and AI platforms too. Employees who keep upgrading their technical skills might be better placed to adapt to these changes.
Cognizant’s restructuring also reflects a larger trend across the Indian IT industry where major technology companies are re-examining traditional workforce structures. Automation, slower client spending, pressure on operating margins and growing AI adoption are all impacting hiring and employee requirements. Similar workforce changes have been reported at several other major technology companies so these developments are particularly important for India’s IT employment market.
Next up is Cognizant’s Project Leap implementation, employee redeployment, new hires and AI-related services investments.
There has been some uncertainty around reports of up to 15k job cuts the company hasn’t confirmed this number yet and its latest workforce numbers show an increase not a decrease in headcount. The next couple of quarters should provide more clarity on how all this will affect employees as well as the long term business strategy of the company.
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