Cognizant to cut 4,000 jobs amid AI push, weak demand

Project Leap programme to cost $230-320 mn, but generate savings of as much as $300 mn

- Jas Bardia

Cognizant's move follows similar actions across the industry.

(MINT)

Cognizant Technology plans to cut about 4,000 jobs, or roughly 1% of its workforce, two people with knowledge of the matter said, even as slowing demand and a push toward automation weigh on growth and prompted the company to lower its full-year outlook.

The company on Wednesday announced Project Leap, a transformation programme involving increased investments in artificial intelligence (AI), integrated digital offerings, and workforce upskilling. Cognizant expects the programme to cost $230-320 million, including $200-270 million of employee severance and other personnel-related costs, but generate savings of as much as $300 million this year.

While Cognizant did not put a number to the employees affected by the restructuring, the management said in a post-earnings analyst call that more than 20,000 freshers would join this year, suggesting reductions in mid-level roles. Headcount rose by 6,000 to 357,600 at the end of March 2026.

Cognizant’s move follows similar actions across the industry. Oracle Corp. laid off 19% of its workforce at the start of the year, while Tata Consultancy Services cut 2% of its workforce last summer.