Cognizant Technology Solutions (Nasdaq: CTSH) plans to cut approximately 4,000 jobs — roughly 1% of its global workforce — as part of a restructuring programme announced alongside first-quarter earnings on April 29, according to two people familiar with the matter. The company did not publicly confirm the number.
Project Leap will cost $230–320 million in restructuring charges, with $200–270 million in employee severance incurred between April and December. Cognizant expects the programme to generate $200–300 million in savings this year, with roughly two-thirds earmarked for reinvestment in AI, integrated offerings, and partnerships.
The cuts target primarily mid-level roles. Cognizant simultaneously said it plans to hire more than 20,000 freshers this year, trading experienced generalist staff for entry-level workers trained on AI tools. Full-year revenue guidance was revised down to 3.5–5.5% growth, citing slowing client demand and automation pressure. Q1 revenue was $5 billion, up 5.8% year over year.
TCS laid off 12,000 mid-level and senior workers in July 2025 under a similar AI-driven restructuring. Infosys, Wipro, and Accenture have announced comparable programmes over the past year.
Across the sector, legacy consulting delivery models built around large teams of generalist IT workers are being replaced by smaller, AI-augmented workforces — the same pattern playing out at the hyperscalers, but under thinner margins and more immediate client pressure to demonstrate AI-driven efficiency.
Related: Microsoft, Google, Meta Just Had Their Best AI Quarter Ever—and Their Workers Paid for It
Cognizant employs approximately 380,000 people globally, with its largest presence in India.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
