IT services major Cognizant Technology Solutions is reportedly planning a significant global workforce reduction that could impact between 12,000 and 15,000 employees. The proposed layoffs are part of a broader restructuring initiative, with the majority of job cuts expected to take place in India, where the company has its largest employee base.
Project Leap Drives Workforce Restructuring
The potential layoffs are linked to the company’s newly launched transformation programme, “Project Leap,” aimed at improving operational efficiency and aligning the business with evolving industry demands.
Cognizant has indicated that it expects to incur restructuring costs ranging between $230 million and $320 million, of which $200 million to $270 million is allocated toward severance and employee-related expenses.
While the company has not officially confirmed the exact number of layoffs, industry estimates based on these cost projections suggest a global reduction in the range of 12,000 to 15,000 roles.
India Expected to Bear the Largest Impact
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India is likely to account for the bulk of the workforce reduction due to its significant share in Cognizant’s global headcount. The company employs over 357,000 people worldwide, with more than 250,000 based in India.
Analysts note that lower average salaries and relatively lower severance costs in India make it a key region for large-scale restructuring. Estimates suggest that a substantial portion of the layoffs—possibly over 12,000 roles—could be concentrated in the country.
Shift Away from Traditional IT Staffing Models
The proposed job cuts reflect a broader structural shift in the IT services industry. Clients are increasingly moving away from traditional “pyramid” staffing models that rely heavily on large numbers of junior employees.
As one industry executive noted, “Customers are not okay with full pyramids anymore and don’t want to fund training of freshers,” highlighting changing client expectations and cost sensitivities.
This transition is driving companies to adopt leaner, more skilled teams supported by automation and digital technologies, reducing dependence on entry-level hiring.
Automation and AI Reshaping Workforce Demand
The restructuring also aligns with Cognizant’s shift toward automation-led and AI-driven service delivery models. Industry experts point out that increasing adoption of artificial intelligence and digital tools is reshaping workforce requirements across IT services firms.
As companies focus on efficiency and high-skill capabilities, roles that are repetitive or training-intensive are becoming less central to business models. The move underscores a wider trend across the sector, where firms are recalibrating workforce strategies in response to evolving technology and client demands.
