Bengaluru, May 6, 2026, 22:33 IST
Cognizant is reportedly preparing to slash between 12,000 and 15,000 jobs globally as part of its Project Leap shake-up, with India likely to absorb the largest share of those reductions, according to several Indian media reports published Wednesday that quoted unnamed sources. The Nasdaq-listed IT services giant hasn’t specified the number of positions that could be impacted.
Just days after Cognizant outlined Project Leap’s expected $230 million to $320 million price tag—mostly hitting in 2026—the reports surfaced. The company earmarked $200 million to $270 million for severance and related personnel expenses; severance, in this context, refers to compensation for employees affected by job cuts.
The new charge is significant, shifting what started as an AI and margin discussion into a workforce problem for a giant in India’s tech services space. Speaking with Reuters last week, Chief Financial Officer Jatin Dalal described 2026 as “more uncertain than last year” — citing a mix of macroeconomic, geopolitical, and sector-specific headwinds. The company, meanwhile, projected quarterly revenue that missed Wall Street’s expectations. Reuters
India faces heightened risk here, with more than 250,000 of Cognizant’s global staff of 357,000-plus based in the country, according to ABP Live. The outlet also notes that Cognizant is shifting to a leaner, AI-driven setup as pockets of IT demand lose steam.
The 12,000-to-15,000 range isn’t an official figure from the company. It comes from assumptions on salaries and severance packages in different markets. In India, for instance, local reports worked off an average yearly salary of about 1.5 million rupees and projected six months’ severance—so, about 750,000 rupees per employee—which points to an India hit of 12,000 to 13,000 jobs.
Chief Executive Ravi Kumar S describes Project Leap as more than just a cost-cutting move—he’s positioning it as a fundamental shift in Cognizant’s approach to staffing. “We are on the journey to get to the operating model,” Kumar told analysts on the earnings call, per CRN. The goal? Reshape the company’s talent pyramid, as digital labour—think software and AI—starts handling jobs that once went to people. CRN
Not every metric disappointed. Cognizant’s Q1 revenue climbed 5.8% year-over-year to $5.413 billion, while bookings over the past 12 months reached $29.6 billion—an 11% gain. As of March 31, headcount hit 357,600, up by 6,000 since December.
It’s a tough market. Back in April, Reuters noted TCS logged its first annual revenue drop in over twenty years, and both Infosys and HCLTech cut their fiscal 2027 revenue-growth projections. The big Indian IT players are now grappling with sluggish client budgets and mounting uncertainty over how AI could reshape their workforce-heavy business models.
But there’s a catch. Cognizant flagged that Project Leap’s costs hinge on certain assumptions, like local legal rules, and final figures might not match initial estimates. The company also cautioned that unplanned events could trigger additional charges or cash outlays they haven’t budgeted for.
Cognizant shares slipped to $51.32 by midday Wednesday in U.S. trading, off 55.5 cents from the prior close. Investors continued selling the stock.
The focus now shifts to execution for employees. Reports indicate the ultimate figure isn’t set—it’ll hinge on how the restructuring unfolds—but the message is unmistakable: Cognizant wants delivery to be flatter, with more automation and lower costs, and India is right at the heart of those plans.
