IT services major Cognizant may be preparing for a major round of layoffs, with reports suggesting that 12,000 to 15,000 jobs could be cut globally under its restructuring plan called “Project Leap.” According to Moneycontrol, India is likely to face the biggest impact because the company has the largest share of its workforce here.
The company currently employs more than 357,000 people worldwide, and over 250,000 of them are based in India. This means a large portion of the workforce reduction could happen across Indian offices if the plan moves forward. On April 29, the Nasdaq-listed company said it expects to spend between USD 230 million and USD 320 million on severance costs as part of the new programme, although it did not officially confirm the exact number of job cuts.
As per the Moneycontrol report, the estimate is based on average salary and severance calculations. In India, the average annual salary is assumed to be around Rs 15 lakh. If severance pay equals about six months of salary, the cost per employee comes to nearly Rs 7.5 lakh. Based on this, experts estimate that around 12,000 to 13,000 employees in India alone could be affected. However, sources said the final number may change depending on how the restructuring is carried out.
The layoffs are linked to a major shift in how IT companies now operate. Clients are spending more carefully, traditional IT services are slowing down, and automation along with artificial intelligence is changing the business model. Companies are moving away from the old pyramid structure, where many junior employees worked under a smaller senior team.
Industry experts say clients are no longer ready to pay for fresher training or support large layered teams. This is forcing companies to rethink hiring and delivery models. Cognizant CEO Ravi Kumar S said the company is building a “broader and shorter pyramid,” combining digital tools with human talent and focusing more on AI-led services.
This comes at a time when many IT firms are restructuring to improve efficiency and protect margins. Slower client spending and rising AI adoption are pushing companies across the sector to reduce costs and redesign operations.
While there is no official layoff figure yet, the possibility of large-scale cuts has created concern among employees, especially in India, where the impact is expected to be the strongest.
