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.
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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.
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