Another phase of workforce rationalisation may be unfolding in the technology services space, with Cognizant reportedly assessing substantial job reductions across its global operations. A significant portion of the proposed cuts is expected to affect employees in India.

According to reports citing industry sources, the company could reduce its headcount by roughly 12,000 to 15,000 positions worldwide. While the company has not officially disclosed the number of roles that may be eliminated, it recently indicated that it anticipates incurring severance expenses in the range of $230 million to $320 million as part of a restructuring drive named “Project Leap.”

The Nasdaq-listed firm has a global workforce exceeding 357,000 employees, with more than 250,000 professionals based in India, making the country its largest talent hub.

What’s Driving the Restructuring?

Sector analysts point to a structural transformation in the IT services delivery model. The traditional “pyramid” approach—where large teams of entry-level staff operate under a smaller group of experienced professionals—is gradually being replaced. Clients are increasingly seeking leaner, outcome-driven teams and are reportedly less inclined to bear the cost of training new recruits.

This shift is prompting companies to rethink organisational hierarchies and adopt more compact, technology-enabled models.

Estimates of possible job losses are being calculated based on projected severance allocations. With average annual salaries in India assumed to be around ₹15 lakh and severance typically equivalent to six months’ pay, restructuring costs could translate into workforce reductions affecting approximately 12,000–13,000 employees in India alone. However, these figures remain speculative and may vary depending on how the plan is executed.

Leadership’s Perspective

CEO Ravi Kumar S has described the initiative as part of a broader global transformation affecting multiple business segments. He highlighted the company’s move toward a “broader and shorter pyramid” structure—an approach combining digital capabilities with human expertise, underscoring a stronger push toward automation and AI-led services.

Part of a Larger Industry Pattern

The potential downsizing aligns with a wider recalibration underway across the IT sector. Slower client spending, increased automation, and the expanding adoption of artificial intelligence are reshaping workforce needs. As competitive pressures intensify, technology firms are realigning staffing strategies to maintain efficiency and protect margins in a rapidly evolving landscape.