Cognizant Technology Solutions is preparing to eliminate around 4,000 positions, roughly 1% of its global workforce of about 357,600 employees, as part of its newly announced Project Leap initiative, According to a report from Mint.
The program, unveiled alongside first-quarter earnings on April 29, 2026, aims to accelerate the company’s shift toward AI capabilities, integrated digital services, and workforce upskilling. Total costs are projected at $230 million to $320 million, with $200 million to $270 million allocated for severance and personnel expenses, and the rest for other charges. Cognizant anticipates $200 million to $300 million in annual savings, two-thirds of which will fund AI investments and partnerships, while the remainder supports productivity enhancements and margin expansion of 20 to 40 basis points.
The layoffs represent the second major workforce action under CEO S. Ravi Kumar since he assumed the role in early 2023, following the NextGen program that cut about 3,500 non-billable roles. Redundancies will span geographies and verticals, driven by client spending slowdowns, AI efficiencies, and cost controls prevalent across the IT services sector.
Notably, Cognizant plans to hire more than 20,000 fresh graduates this year, prioritizing entry-level talent with digital and AI skills over mid-level generalists. The company has not officially confirmed the exact layoff figure
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