Cognizant Layoffs: Over 15,000 Employees to Lose Jobs in Major Restructuring
Cognizant is a very large IT company. It is now planning to cut many jobs across the world. Reports say that more than 15,000 employees are at risk of losing their jobs. This news comes as the IT industry changes because of new technology like artificial intelligence (AI).
The company has already started making a list of employees who will be laid off. A very large part of these job cuts will happen in India. Cognizant has a lot of workers in India, so the impact there will be very high. Other big companies like Oracle and Amazon have also made similar job cuts recently.
Massive Severance Costs and Project Leap
Cognizant expects to spend a lot of money on these layoffs. They plan to spend between USD 230 million and USD 320 million. This money is for severance costs. Severance costs are the payments given to employees when they are asked to leave the company.
The company is doing this under a new plan called Project Leap. This is an internal restructuring initiative. Under Project Leap, the company has set aside a budget that could cover layoffs for 12,000 to 13,000 employees in India alone. This shows that India will face the biggest part of the job cuts.
Salary and Compensation Details for India
In India, the average annual salary for these employees is estimated to be around Rs 15 lakh. When an employee is laid off, they might receive a compensation payout. This payout is expected to be equal to about six months of their pay. This means an employee might get around Rs 7.5 lakh as they leave the company.
| Detail | Information |
|---|---|
| Total Employees at Risk | Over 15,000 |
| Estimated Job Cuts in India | 12,000 to 13,000 |
| Total Severance Budget | USD 230 million to USD 320 million |
| Restructuring Plan Name | Project Leap |
| Average Annual Salary (India) | Rs 15 lakh |
| Estimated Payout per Person (India) | Rs 7.5 lakh (6 months’ pay) |
Why is Cognizant Cutting Jobs?
The main reason for these layoffs is the rise of artificial intelligence (AI). The IT industry is changing quickly. Companies want to do more work using fewer people. They are using automation and AI to handle tasks that humans used to do.
Cognizant CEO Ravi Kumar S said the company is going through a global transformation. He explained that the company is moving away from its “old pyramid model.” They are now moving toward a “smaller pyramid model.” This means they will focus more on digital labor and automation instead of having a very large number of human workers.
Timeline of the Announcement
The company gave hints about these job cuts earlier. On April 29, 2026, during the quarterly earnings announcement, the company mentioned the expected spending on severance costs. By May 6, 2026, more details about the scale of the layoffs and the impact on India became clear. The company is trying to change its business model to stay competitive in the new age of AI.
FAQs
How many employees will Cognizant lay off?
Cognizant is expected to lay off more than 15,000 employees globally.
How many jobs will be cut in India?
Reports suggest that between 12,000 and 13,000 jobs could be cut in India under Project Leap.
What is Project Leap?
Project Leap is Cognizant’s internal plan to restructure the company and change how it works.
Why is Cognizant laying off workers?
The layoffs are happening because the company is moving toward artificial intelligence and automation to do more work with fewer people.
How much severance pay will Indian employees get?
Employees in India may receive about six months of pay, which is roughly Rs 7.5 lakh on average.
Conclusion
The Cognizant layoffs show a big shift in the IT world. With over 15,000 jobs at risk, the company is focusing on AI and a smaller workforce. Project Leap will lead to many job cuts, especially in India, as the company spends millions of dollars on severance payouts to restructure its business.