Bengaluru, May 5, 2026, 17:38 IST
Cognizant Technology Solutions, which trades on the Nasdaq, is considering slashing between 12,000 and 15,000 jobs globally, according to a Moneycontrol report on Tuesday that cited several sources. Most of the layoffs could hit India. As of publication, the company hadn’t replied to Moneycontrol’s requests for comment.
The potential cuts highlight a bigger shift underway in India’s tech services sector, where artificial intelligence— software that automates coding, testing, and support—is starting to reshape pricing and staffing models. Cognizant has rolled out Project Leap, its restructuring plan designed to speed up the transition to an AI-first way of operating. Clients, though, are still holding back on discretionary IT spending.
Cognizant laid out plans for Project Leap, a move aimed at boosting spending on AI, new partnerships, integrated services, and retraining staff—all while trimming headcount to what it called a “properly sized” level. For 2026, the company is bracing for $230 million to $320 million in related expenses, with $200 million to $270 million of that set aside for severance and other employee exit costs. News | Cognizant Technology Solutions
The latest estimate comes in higher than previous numbers. Back on May 2, Mint cited two people familiar with the situation, reporting that Project Leap would slash at least 4,000 jobs—about 1% of Cognizant’s staff.
It comes down to size and payroll in India. According to India Today, which referenced Moneycontrol, the math here uses an average annual India salary of about Rs 15 lakh, then factors in a severance payout equal to half a year’s wages—so, about Rs 7.5 lakh per person. That puts the estimated impact for India somewhere in the 12,000 to 13,000 job range.
The company hasn’t disclosed exactly how many jobs are being cut. Headcount stood at 357,600 at the end of March—an increase of 6,000 since December. First-quarter revenue came in at $5.41 billion, a 5.8% rise from the same period last year.
Cognizant leaders are pointing squarely at AI as the reason for the shift. In an internal memo highlighted by Mint, Surya Gummadi, who runs the company’s U.S. business, called the changes in the industry “real and accelerating.” He told staff resources are getting redirected—AI skills and partnerships are where the company is aiming. mint
The staffing approach is shifting, too. Cognizant CEO Ravi Kumar S calls the new setup a “broader and shorter pyramid”—fewer rungs separating junior staff from specialists, with a greater share of tasks handled by digital labor alongside humans. Fortune India
The old outsourcing setup—big pools of junior engineers beneath smaller bands of senior managers—is starting to buckle. According to Moneycontrol, industry insiders say clients are no longer accepting the traditional staffing pyramid or the training bills for new hires.
The landscape isn’t uniform. In July 2025, Tata Consultancy Services announced plans to let go of around 2% of its staff—about 12,200 jobs. Phil Fersht, CEO at HFS Research, told Reuters that AI is chipping away at the industry’s “people-heavy” approach to services. Reuters
Infosys, for its part, has struck a contrasting note. CEO Salil Parekh told Moneycontrol the company isn’t anticipating layoffs and plans to bring in roughly 20,000 new graduates this year. Parekh’s view: AI should add to workloads, not reduce them.
The total number of layoffs could still shift. Cognizant flagged that Project Leap’s final costs hinge on several variables—assumptions, local legal requirements, execution—and actual totals might not line up with forecasts. Moneycontrol described its figure as a rough estimate, drawn from broad assumptions about pay, years of service, and location.
Right now, the takeaway is hard to miss. Cognizant’s got three priorities: safeguarding margins, pouring money into AI, and compressing its delivery structure — all of which put its India staff, more than 250,000 strong, right in the crosshairs of the shake-up.
