IT giant Cognizant has announced a sweeping restructuring programme that will result in significant job cuts, even as the company posted revenue growth in the first quarter of 2026.
Cognizant plans to cut about 4,000 jobs, or roughly 1 percent of its workforce, The Mint reports, as slowing demand and a push toward automation weigh on growth and prompted the company to lower its full-year outlook.
Cognizant declined to comment on how many people will be shown the door, but said redundancies will be across geographies and all parts of the company. According to sources, some people have already started receiving layoff notices, with some being asked to leave certain projects.
Cognizant announces Project Leap
The company announced Project Leap, a programme designed to accelerate its transformation to the operating model of the future by funding investments in integrated offerings, AI capabilities and partnerships, reshaping productivity through competitive offerings and upskilling its workforce.
The project is expected to generate savings of $200–$300 million this year and lift margins by 20–40 basis points. In connection with Project Leap, the company expects to record costs of $230 million to $320 million, consisting of $200–$270 million of employee severance and other personnel-related costs, and $30–$50 million of other charges.
Two-thirds of the savings are earmarked for reinvestment into growth, AI, and partnerships, with the remaining one-third directed toward upskilling the workforce.
Indian employees to be affected
Most of the company's employees are based in India, making the impact potentially sizeable. As of March 2026, Cognizant had about 357,600 employees, including 256,900 in India, 41,600 in North America, 14,600 in continental Europe and 7,800 in the UK.
The management said in a post-earnings analyst call that more than 20,000 freshers would join this year, suggesting reductions are concentrated in mid-level roles.
Cognizant reported Q1 2026 revenue of $5.413 billion, up 5.8 percent year-on-year, with constant-currency growth of 3.9 percent. Trailing 12-month bookings reached $29.6 billion, up 11 percent, for a book-to-bill ratio of roughly 1.4x, helped by seven large deals including one mega deal valued at $500 million or more.
Congizant follows TCS massacre
The move mirrors that of Tata Consultancy Services, which laid off 12,000 people, mostly mid-level and senior managers, who were seen as not equipped with the latest technologies.
