Cognizant plans to cut around 4,000 jobs as demand slows and automation accelerates
The company is investing heavily in AI through its “Project Leap” transformation programme
Despite layoffs, it continues strong hiring and reports solid bookings and AI-led growth
Cognizant Plans 4,000 Job Cuts as AI Slows IT Demand
As AI-driven disruption reshapes the IT industry, Cognizant joins global peers in restructuring, even as it doubles down on automation, fresh hiring, and large AI deals
Cognizant Wikipedia
Summary
Advertisement
As artificial intelligence (AI) continues to disrupt the global IT services industry, several major players are restructuring their workforce. In this shifting landscape, Cognizant is also moving to streamline operations amid slowing demand and rising automation.
According to a Mint report, the company plans to cut about 4,000 jobs, roughly 1% of its workforce, as it faces pressure on growth and has revised its full-year outlook downward.
The development comes amid broader job cuts across the sector. Oracle has reportedly reduced nearly 19% of its workforce, while Tata Consultancy Services laid off around 12,000 employees in 2025. Amazon has also impacted hundreds of employees in India through global restructuring efforts.
Reports suggest that more than 30,000 tech job cuts were announced globally in the first two months of 2026 alone, with India accounting for the highest share in Asia.
“Project Leap” to Drive AI Shift
On April 29, Cognizant announced its transformation programme, “Project Leap”, aimed at reshaping its operating model through AI integration, platform investments, and workforce upskilling. The initiative focuses on improving productivity, expanding integrated offerings, and strengthening partnerships.
Advertisement
The company expects the programme to cost between $230 million and $320 million, with most expenses likely to be incurred in 2026. This includes $200–270 million in severance and personnel-related costs, and $30–50 million in other restructuring charges.
While Cognizant has not specified the exact number of employees impacted, it said in its post-earnings analyst call that more than 20,000 freshers will be hired this year, indicating continued entry-level recruitment alongside mid-level restructuring.
Workforce Shift and AI Integration
The company’s total headcount rose to 357,600 employees, up 6,000 sequentially and more than 21,000 year-on-year, while attrition remained steady at 12.3%.
Chief Executive Ravi Kumar S said that the company’s AI-focused strategy is beginning to show results, with more than 5,000 AI engagements currently underway. He also noted that nearly 40% of code at Cognizant is now AI-assisted, reflecting deeper integration of artificial intelligence across operations.
Advertisement
Strong Deals Amid Transition
Despite restructuring, Cognizant reported solid business momentum. Trailing twelve-month bookings rose 11% YoY to $29.6 billion, while quarterly bookings jumped 21%, supported by strong large-deal wins, including one mega deal.
The company also announced the acquisition of Astreya for around $600 million, aimed at strengthening its AI infrastructure and data centre capabilities as enterprises accelerate digital transformation.