Cognizant Plans to Cut Up to 15,000 Jobs; India Set for Major Hit

• Cognizant is considering 12,000–15,000 job cuts worldwide, according to Moneycontrol

• India is likely to see the highest impact due to its large workforce base

• The move comes as part of the company’s AI-led transformation strategy

Cognizant is once again under the spotlight as it weighs a significant workforce reduction that could impact between 12,000 and 15,000 employees globally, according to Moneycontrol. A large share of these layoffs is expected to come from India, where the company has its biggest employee base.

With over 357,000 employees worldwide and more than 250,000 in India, the company’s restructuring reflects a broader industry shift. Clients are increasingly moving away from traditional pyramid-heavy staffing models, prompting firms to rethink team structures and costs.

Industry executives told Moneycontrol that the shift is being driven by changing client demands, with companies moving away from traditional pyramid-heavy staffing models toward leaner, tech-enabled teams.

Cognizant is undergoing another cost restructuring phase, following its earlier NextGen programme in 2023–24, which led to around 3,500 job cuts and the exit of nearly 11 million square feet of office space.

After the company’s quarterly results, CEO Ravi Kumar S described the changes as part of a global transformation effort affecting multiple parts of the organisation. He also highlighted a shift toward a “broader and shorter pyramid” model that combines digital and human labour.

India-Heavy Impact

According to Moneycontrol, the layoff estimates are based on broad, back-of-the-envelope calculations using typical salary and severance benchmarks across geographies.

In India, the average annual salary is assumed to be around ₹15 lakh, with severance typically at about six months’ pay—roughly ₹7.5 lakh per employee. Applying these assumptions suggests that around 12,000–13,000 roles in India could be impacted.

In higher-cost markets like the US, average salaries of about $100,000 and severance costs of $50,000 per employee mean fewer job cuts for the same budget. Combining these regional assumptions leads to the global estimate of 12,000–15,000 employees, though sources told Moneycontrol the final number may vary depending on execution

Despite the restructuring, Cognizant reported strong performance, with bookings rising 11% year-on-year (YoY) to $29.6 billion and quarterly bookings up 21%, driven by major deal wins.

The company also acquired Astreya for about $600 million to strengthen its AI infrastructure and data centre capabilities amid growing demand for digital transformation.

AI Push Drives ‘Project Leap’

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. 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 had 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.

Global IT Layoffs Surge in 2026

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.