Cognizant Layoffs 2026: IT Major to Cut 4,000 Jobs Globally Amid AI Push and 'Project Leap' Launch
Cognizant plans to cut about 4,000 jobs (around 1% workforce) under its “Project Leap” initiative to boost AI capabilities. While reducing mid-level roles, it will hire 20,000 freshers. The restructuring may cost up to USD 320 million but aims for USD 300 million savings, reflecting an industry-wide shift toward automation and digital transformation.
Cognizant Technology Solutions is reportedly set to reduce its global workforce by approximately 4,000 employees as it pivots towards artificial intelligence and automation. The restructuring move comes as the IT services major launches "Project Leap", a transformation initiative designed to accelerate digital capabilities while managing slowing demand in traditional sectors.
The layoffs represent roughly 1% of the company's total headcount, which stood at 357,600 at the end of March 2026. Reports say that the firm focuses on reducing mid-level roles, it simultaneously plans to hire over 20,000 freshers this year, signalling a significant shift in its internal talent structure. Tech Layoffs: 92,000 Affected As 80 Companies Cuts Jobs; Oracle, Amazon and Meta Lead.
Cognizant Layoffs Amid Investment in Artificial Intelligence
The company has introduced Project Leap to fund new AI projects, enhance partnerships, and upskill its current workforce. Surya Gummadi, head of Cognizant’s US business, informed employees via an internal memo that the industry is experiencing "real and accelerated" changes. He noted that the company is choosing to reinvest in capabilities that will matter most in an AI-driven landscape.
This initiative is expected to incur costs between USD 230 million and USD 320 million. A substantial portion of this, estimated between USD 200 million and USD 270 million, is earmarked for compensation and personnel-related expenses, including severance.
Financial Performance and Sector Trends
Cognizant reported a revenue of USD 5.41 billion for the latest quarter, marking a 5.8% year-on-year increase. However, its operating margin saw a slight decline of 40 basis points to 15.6%. Net profit for the period was recorded at USD 662 million. To offset restructuring costs, the company estimates that Project Leap could generate savings of up to USD 300 million within the current year.
Industry analysts suggest that Cognizant is not alone in this transition. Experts from Everest Group and HFS Research indicate that large IT firms are moving away from labour-intensive models. By reducing optional spending, such as travel and mid-level management costs, companies like Cognizant, Oracle, and Tata Consultancy Services are adapting to the disruption caused by generative AI and automated consulting solutions. Mark Zuckerberg Links Upcoming Meta Layoffs to Multi-Billion Dollar AI Infrastructure Spending.
Cognizant Technology Solutions Corp. is cutting 4,000 jobs, roughly 1% of its workforce, as it pivots toward artificial intelligence through its "Project Leap" initiative. The company expects to spend up to USD 320 million on restructuring while aiming for USD 300 million in savings, reflecting a broader industry shift toward automation.
(The above story first appeared on LatestLY on May 02, 2026 11:41 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
