Cognizant is reportedly considering a major workforce reduction that could impact between 12,000 and 15,000 employees globally, with India expected to bear the brunt of the layoffs.
The move is part of the company’s restructuring initiative, internally referred to as “Project Leap.” While Cognizant has not officially confirmed the exact number of job cuts, it has indicated that it expects to incur severance costs between $230 million and $320 million as part of the programme.
India Likely to See Maximum Impact
Cognizant currently employs more than 357,000 people worldwide, with over 250,000 based in India. Given this significant concentration, estimates suggest that a large share of the layoffs could occur in the country.
Based on industry calculations, the average annual salary in India is estimated at around ₹15 lakh. With severance typically amounting to six months of pay, or roughly ₹7.5 lakh per employee, analysts estimate that between 12,000 and 13,000 employees in India could be affected.
Fewer Cuts Expected in High-Cost Markets
In comparison, higher-cost regions such as the United States may see fewer job cuts. With average annual salaries around $100,000 and severance packages ranging from four to six months’ pay (approximately $50,000 per employee), the same level of spending would impact a smaller number of employees.
These calculations suggest that the total global layoffs could range between 12,000 and 15,000 employees. However, the final figures may vary depending on factors such as employee tenure, compensation structures, and geographic distribution.
Leadership Signals Strategic Shift
Speaking after the company’s recent quarterly results, Ravi Kumar S described the restructuring as part of a broader organizational transformation.
“It’s a global programme… various parts of the organization will go through the process,” he said.
Kumar also indicated a shift in Cognizant’s workforce strategy toward what he described as “a broader and shorter pyramid,” along with a hybrid model that combines “digital labour and human labour.”
Industry-Wide Transformation Underway
The expected layoffs come amid a larger transformation across the global IT services sector. Companies are increasingly restructuring their workforce in response to slower discretionary spending by clients, rising automation, and the rapid adoption of artificial intelligence (AI)-driven delivery models.
As businesses accelerate digital transformation, IT firms are focusing more on efficiency, automation, and high-value services, often leading to workforce realignment.
Outlook
While the exact number of layoffs remains uncertain, the development highlights the growing pressures within the IT sector. For India, which serves as a global hub for IT services, the impact could be significant given the scale of operations.
The final outcome of Project Leap will depend on how Cognizant implements its restructuring strategy in the coming months. However, the move signals a clear shift in workforce planning as technology continues to reshape the future of work.
