Cognizant Reportedly Eyes Major Workforce Reduction Amid AI-Led Restructuring; India May Bear Brunt

Cognizant is said to be considering a major workforce reduction globally. In recent months, layoffs across the tech industry have accelerated, leading tech firms like Amazon, Meta, and Oracle to announce drastic workforce reductions. Cognizant, an IT consulting and outsourcing company, is reportedly the latest among them to plan significant job cuts affecting thousands of employees globally. India is expected to bear the brunt of the restructuring. The move comes amid continued structural changes in the global technology sector due to AI adoption.

Cognizant Reportedly Planning Major Layoffs

According to a report by Moneycontrol, Cognizant could reduce its global workforce by around 12,000 to 15,000 employees. Citing sources familiar with the matter, the report states that most of these layoffs are expected to affect employees in India, a market where the company has over 2.5 lakh workers out of its global workforce of more than 3.57 lakh employees.

Calculations tied to severance costs disclosed by Cognizant during its quarterly earnings announcement on April 29 are said to have led to this estimate. At the time, the company reportedly mentioned it expects to incur between $230 million (roughly Rs. 2,185.9 lakh crore) and $320 million (roughly Rs. 3,041.3 lakh crore) in severance-related expenses.

The aforementioned figures were reportedly under a restructuring initiative called Project Leap. The company, however, did not disclose the exact number of affected employees.

Sources cited in the report further suggest that the estimate is based on average salary and severance assumptions across different regions. In markets like India, the average annual salaries are lower compared to markets like the US. This reportedly means the same restructuring budget could affect a larger number of employees.

Industry executives quoted in the report said clients are increasingly moving away from traditional pyramid-heavy staffing structures, where large teams of junior employees typically support smaller groups of senior staff. According to one executive, customers are no longer willing to fund training-heavy fresher hiring models.

Cognizant CEO Ravi Kumar S also hinted at these changes during the company's earnings interaction, describing the restructuring as a “global programme.” He reportedly said the company is moving towards a “broader and shorter pyramid” model that combines “digital labour and human labour.”

The IT consulting and outsourcing company is the latest among the tech firms to be weighing layoffs. According to a report, March 2026 could have been the worst month for tech workers, seeing the highest number of layoffs in the past two years. Nearly 92,300 tech workers were laid off between January 1 and April 20 this year, with March alone accounting for around 38,000 job cuts, which is reportedly the highest monthly total in the past two years.

Several major companies, including Oracle and Meta, also announced workforce reductions amid growing investments in AI infrastructure and leaner organisational structures.