IT major Cognizant Technology is planning to cut nearly 4,000 jobs, or about 1 per cent of its workforce, as part of a broader restructuring effort, Mint has reported citing two people with knowledge of the
matter. It added that the company has also lowered its full-year outlook amid an AI push and demand slowdown.
The move coincides with the rollout of ‘Project Leap’, a transformation programme aimed at boosting investments in artificial intelligence, strengthening digital capabilities and reskilling employees. Cognizant expects the initiative to cost between $230 million and $320 million, including $200–270 million in compensation and personnel-related expenses. However, it anticipates savings of up to $300 million this year from the programme.
While the company has not officially confirmed the scale of layoffs, its management indicated during a post-earnings analyst call that it plans to hire over 20,000 freshers this year, according to the report. This points to a likely shift in workforce composition, with reduced reliance on mid-level roles as automation and AI adoption accelerate.
Cognizant’s headcount stood at 357,600 at the end of March 2026, reflecting a net addition of 6,000 employees.
Industry experts say the restructuring aligns with a wider trend in the IT services sector. Phil Fersht noted that companies are increasingly moving away from labour-intensive delivery models toward automated services, with greater emphasis on AI, consulting and industry-specific offerings.
This marks the second round of job cuts under CEO S. Ravi Kumar, who assumed office in January 2023. Earlier, the company had eliminated about 3,500 roles, primarily in non-billable functions.
Experts also highlight cost discipline as a key driver. Peter Bendor-Samuel said the company is curbing discretionary spending, including travel, while adjusting to AI-led disruption.
In its latest quarterly results, Cognizant reported revenue of $5.41 billion, up 1.5% sequentially and 5.8% year-on-year, broadly in line with estimates. Net profit came in at $662 million, slightly higher sequentially but marginally lower on a yearly basis, while operating margin slipped 40 basis points to 15.6%.
The development follows similar actions across the sector, with Oracle Corporation and Tata Consultancy Services also announcing workforce reductions in recent months.
