IT services major Cognizant is planning a significant workforce reduction that could impact between 12,000 and 15,000 employees globally, with India expected to account for the majority of the cuts, according to a report.
The move is part of the company's newly announced “Project Leap”, under which Cognizant has earmarked between $230 million and $320 million in restructuring costs. Of this, $200 million to $270 million is expected to go towards severance and employee-related expenses, Moneycontrol said in a report, citing sources. While the company has not officially disclosed the number of layoffs, estimates are based on internal cost assumptions and salary benchmarks across regions.
Cognizant employs over 357,000 people globally, with more than 250,000 based in India. The bulk of the workforce rationalisation is likely to take place in the country, given lower average salary levels and relatively lower severance costs compared to developed markets, the report said.
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According to the report, the expected cuts reflect a deeper structural shift in the IT services industry. Clients are increasingly moving away from traditional pyramid-heavy staffing models and are unwilling to subsidise training of entry-level hires. This has pushed companies to adopt leaner workforce structures and focus on productivity gains.
Chief executive officer Ravi Kumar S recently indicated that the company is transitioning towards a “broader and shorter pyramid” model, combining digital and human labour. The shift stresses Cognizant's growing emphasis on automation and AI-led delivery.
The development comes amid a broader wave of restructuring across the IT sector, as companies respond to slower discretionary spending, rising automation, and margin pressures. Peers including Tata Consultancy Services, Accenture, HCLTech and Oracle have also announced job cuts or workforce realignments over the past year.
The report says that this is not Cognizant's first cost reset. Its earlier NextGen programme saw around 3,500 roles eliminated and a significant reduction in office space footprint. The latest move reinforces a sector-wide trend where IT firms are prioritising efficiency, automation, and cost optimisation over aggressive hiring.
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