BENGALURU, India (Diya TV) — Cognizant may cut between 12,000 and 15,000 jobs worldwide as part of its restructuring plan, according to a report by Moneycontrol. The move signals a major shift in how the IT services giant operates as it adapts to changing client demands and growing use of artificial intelligence.
The company said on April 29 that it expects to spend between $230 million and $320 million on severance under its newly announced Project Leap. It did not disclose the number of employees affected. However, industry estimates suggest the layoffs could be much larger than initially indicated. Cognizant employs more than 357,000 people globally. Over 250,000 of them work in India. Analysts used salary data and severance norms to estimate the scale of job cuts. These calculations point to a significant workforce reduction, especially in India.
India may bear the brunt of the layoffs due to lower salary levels and higher workforce concentration. The average annual salary in India is about Rs 15 lakh. Severance packages usually equal six months of pay. That puts the cost per employee at roughly Rs 7.5 lakh.
Based on these figures, a large portion of the restructuring budget could translate into 12,000 to 13,000 job cuts in India alone. This estimate highlights the scale of the company’s ongoing transformation. In contrast, layoffs in higher-cost regions like the United States may be smaller in number. The average salary there is close to $100,000 a year. Severance payouts range from four to six months, or about $50,000 per employee. This means fewer job cuts would be needed to reach the same cost targets.
The layoffs reflect bigger changes in the IT services industry. Clients now expect more efficiency and faster results. Many no longer support traditional workforce structures that rely heavily on large numbers of junior employees. Industry executives say companies are moving away from pyramid-shaped teams. These models typically include many entry-level workers and fewer senior staff. Clients now prefer leaner teams with higher skill levels.
“It’s a global program,” said CEO Ravi Kumar S while speaking after the company’s quarterly results. He said different parts of the organization will change. He also noted that Cognizant is shifting toward a “broader and shorter pyramid.”The company plans to combine digital labor with human talent. This approach focuses on automation, AI tools, and skilled professionals.
Cognizant had earlier indicated that about 4,000 jobs, or 1% of its workforce, would be cut under Project Leap. The new estimates suggest a much larger impact. At the same time, the company plans to hire more than 20,000 fresh graduates in 2026. This move mirrors its hiring strategy from the previous year. It shows that Cognizant aims to balance job cuts with new hiring focused on future skills.
The restructuring aims to save up to $300 million this year. The company wants to improve margins while investing in AI and digital capabilities. It plans to redeploy resources toward high-growth areas like artificial intelligence and automation. An internal memo from executive Surya Gummadi described the layoffs as part of a larger transformation. He said the shift is “real” and “accelerated.” He also stressed the need to align with new industry trends.
Cognizant is not alone in this strategy. Other major IT firms, including TCS and Accenture, are making similar moves. They are cutting mid-level roles while increasing investments in entry-level talent with AI skills. This trend reflects a broader change in the IT sector. Companies now focus on building agile teams that can deliver faster results with fewer people.
