Cognizant to cut over 4,000 jobs as Project Leap shifts focus to AI
Cognizant Technology plans to cut roughly 1% of its workforce, impacting over 4,000 jobs. The move comes as slowing demand and a push towards automation weigh on growth, and after the company lowered its full-year outlook, according to a Live Mint report
On Wednesday, the company announced Project Leap, a transformation programme that will involve higher investment in AI, integrated digital offerings and workforce upskilling. Cognizant said the programme is expected to cost between $230 million and $320 million, including $200 million to $270 million in employee severance and other personnel-related costs, while generating savings of as much as $300 million this year.
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Cognizant did not specify how many employees would be affected by the restructuring. However, management said on its post-earnings analyst call that more than 20,000 freshers would join this year, indicating that the reductions could be focused on mid-level roles.
Despite layoffs, the company’s headcount rose by 6,000 to 357,600 at the end of March 2026. The latest move marks the second round of layoffs under chief executive S. Ravi Kumar, who took charge in January 2023.
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Four months after Kumar took over, Cognizant laid off about 3,500 employees in May 2023 in non-billable roles. The current restructuring through Project Leap comes as the company looks to reshape its workforce while increasing spending on AI and digital offerings.
The month of April was heavy for the tech industry as more than 40,000 employees became victims of AI-driven layoffs. From Oracle, Snap, Meta to now Cognizant, companies are restructing their workforce, AI spending increase or AI automation replaces roles.
