Cognizant Plans to Lay off 12,000-15,000 Jobs Amid AI-Led Restructuring, Indian Employees to Hit Most

IT services company Cognizant is reportedly preparing for a major workforce restructuring initiative that could impact between 12,000 and 15,000 employees globally, as the company accelerates operational transformation and automation adoption. 

Project Leap to Drive Organisational Restructuring 

As per The Moneycontrol reports, the restructuring exercise is part of an internal initiative named “Project Leap”, under which Cognizant is expected to incur restructuring expenses ranging between $230 million and $320 million. 

A substantial portion of these costs i.e. $200-270 million is likely to be directed towards employee separation-related payouts and transition expenses, according to reports. 

India Expected to Account for Majority of Workforce Reduction 

With more than 250,000 employees located in India out of Cognizant’s global workforce of over 357,000, the country is expected to witness the largest share of the proposed rationalisation. 

As per the report, lower salary structures and comparatively lower severance costs in India make workforce restructuring financially more viable than in developed markets. 

Changing Client Expectations Reshaping IT Services 

The latest restructuring reflects broader shifts taking place across the technology services industry. 

Large enterprise clients are increasingly focusing on productivity, automation, and outcome-based delivery rather than traditional labour-intensive execution models.  

AI And Automation Becoming Central to Delivery Models 

Cognizant management has recently highlighted plans to transition towards a leaner workforce structure supported by digital and AI-led capabilities. 

The company is increasingly integrating automation into service delivery processes, with the objective of improving operational efficiency and reducing dependency on manual execution-heavy models. 

Sector-Wide Trend of Cost Optimisation 

The reported move comes amid continued pressure across the IT sector from slower discretionary spending, margin pressures, and rapid adoption of artificial intelligence technologies. 

Several global technology and IT services companies have announced restructuring measures, layoffs, or operational realignments over the past year as businesses adapt to changing demand patterns. 

Continuation Of Earlier Efficiency Initiatives 

This is not the first major cost optimisation initiative undertaken by Cognizant. Previous restructuring programmes had already resulted in workforce reduction and consolidation of office infrastructure. 

The latest exercise further indicates that operational efficiency and automation are becoming key priorities for technology services firms globally. 

Read More: RBI Distributes Portfolios to Its 4 Deputy Governors! 

Conclusion 

Cognizant’s reported restructuring plan highlights the ongoing transformation of the IT services industry, where companies are increasingly prioritising automation, leaner workforce structures, and AI-enabled delivery capabilities to improve efficiency and competitiveness. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.