Cognizant is planning to cut between 12,000 and 15,000 jobs globally under its restructuring program “Project Leap,” with India expected to bear the brunt of the layoffs due to its large workforce concentration. The move reflects a broader industry shift toward automation, AI-led delivery, and leaner staffing models.
Cognizant, one of the world’s largest IT services companies, employs over 357,000 people globally, with more than 250,000 based in India. The company has announced a restructuring initiative called Project Leap, aimed at transforming its operating model to be more AI-first and automation-driven. This restructuring is expected to cost between $230 million and $320 million, with severance packages accounting for the majority of expenses.
Impact on India
India accounts for nearly 72% of Cognizant’s global workforce, making it the most affected region.
Layoffs are expected to be concentrated in mid-level roles, which traditionally formed the backbone of India’s IT pyramid.
Lower severance costs and salary benchmarks compared to developed markets make India a cost-effective location for workforce rationalization.
The cuts could significantly affect the aspirational middle class that has grown around IT jobs in India over the past two decades.
Reasons Behind the Layoffs
Slower client spending in discretionary IT projects.
Automation and AI adoption, reducing reliance on pyramid-heavy staffing models.
Margin pressures across the IT sector, forcing companies to prioritize efficiency.
Industry peers like TCS, Accenture, HCLTech, and Oracle have also announced workforce realignments in recent months.
Broader Implications
Signals the end of traditional IT staffing pyramids in India, with companies moving toward leaner, skill-focused structures.
Highlights the growing importance of AI, cloud, and digital skills for future employability.
Could trigger a wave of reskilling initiatives as employees seek to adapt to new industry demands.
May impact India’s economic growth story, given the IT sector’s role as a major employment generator.
Cognizant’s planned job cuts under Project Leap mark one of the largest IT layoffs of 2026, with India set to absorb the biggest impact. While the restructuring aims to improve efficiency and margins, it underscores the urgent need for Indian IT professionals to reskill in AI, automation, and digital technologies to remain competitive in a rapidly evolving industry.
