Cognizant Layoffs 2026: IT Company May Cut 12,000-15,000 Jobs Globally, Major Impact Expected in India

Cognizant, a global IT services and consulting firm is reportedly preparing for a large-scale workforce restructuring. The company, which employs over 3.5 lakh people worldwide with a significant base in India, is looking to realign its operations as industry dynamics shift.

Cognizant Layoffs 2026: Company May Cut 12,000-15,000 Jobs Globally, Major Impact Expected in India

According to people familiar with internal discussions, Cognizant could reduce between 12,000 and 15,000 roles globally. A substantial portion of these job cuts is expected to be concentrated in India, where the company has its largest workforce and where cost structures allow for broader adjustments.

The restructuring is part of Cognizant's transformation program, Project Leap, announced alongside its recent quarterly results. The initiative is aimed at improving efficiency, simplifying operations, and positioning the company for future growth.

Cognizant has estimated the total cost of this program at $230 million to $320 million as per Moneycontrol report. Of this, around $200 million to $270 million is expected to go toward severance payouts and other employee-related expenses across global markets.

Cognizant India to See Larger Cuts Than US and Other Markets

India is likely to see the highest impact from the restructuring due to its large employee base and relatively lower salary levels compared to developed markets. This allows the company to optimise costs more effectively in the region.

In contrast, workforce reductions in higher-cost geographies like the United States are expected to be more limited, as compensation and severance payouts per employee are significantly higher.

The move also reflects broader changes in client expectations across the IT services industry. Companies are increasingly moving away from the traditional pyramid model that relies heavily on junior employees.

Instead, there is a growing demand for leaner, more skilled teams that can deliver faster results. Clients are also becoming less willing to fund large-scale training of freshers, prompting IT firms to rethink their workforce strategies.

Cognizant Shifts to Tech-Driven Model with Focus on AI and Automation

Cognizant's leadership has emphasised a transition toward a more technology-driven delivery model. CEO Ravi Kumar S has described Project Leap as a comprehensive global effort that will impact multiple parts of the organisation.

The company is working to integrate digital tools, automation, and AI into its operations, aiming to create a more agile and efficient workforce capable of handling evolving client needs.

As part of this transformation, Cognizant is reshaping its organisational structure to make it flatter and more responsive. The company is shifting toward a "broader and shorter pyramid," reducing layers of hierarchy and focusing on productivity.

Tech Layoffs 2026: Cognizant's Total 3.5 Lakh Global Workforce Faces Major Restructuring Shift

With a workforce of over 350,000 employees globally, including more than 250,000 in India, Cognizant's restructuring marks a significant shift in the IT services sector. While the final number of job cuts may vary, the direction is clear-toward a leaner, tech-enabled organisation built for long-term resilience.

GoodReturns could not independently verify the development, as Cognizant has not made any official announcement regarding the reported workforce restructuring.

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