Bengaluru: Nasdaq-listed IT services firm Cognizant, which has the largest presence in India, plans to reduce workforce as the company introduced Project Leap programme.
Though the company did not specify numbers, it would be across verticals and geographies. According to sources, a few people have already started receiving layoff notices. "Some people have been asked to leave certain projects," sources told DH.
During the company's earnings press conference, on the implementation of Project Leap, the company's CFO Jatin Dalal said it is currently being implemented and various geographies will go through this process.
Considering severance costs, the layoff might affect at least 3,500 employees.
Cognizant CEO's pay jumps 18% to $19 million in 2025In connection with Project Leap, the company expects to record costs of $230 million to $320 million, with substantially all of the costs expected to be incurred in 2026. "This consists of $200 million to $270 million of employee severance and other personnel related costs and $30 million to $50 million of other charges," the firm said.
The company employs 357,600 people, of which,over 2,50,000 are employed in India.
Project Leap is designed to accelerate the company's transformation to the operating model of the future by funding investments in its integrated offerings, AI capabilities and partnerships, reshaping productivity through competitive offerings and upskilling workforce. The company said in a release that by fostering a workforce that is properly sized, AI-enabled and possesses the skills required for success as well as optimizing its technology footprint.
"We aim to streamline operations and enhance productivity through AI-led efficiencies, creating a more agile and cost-effective operating model. This program is expected to generate in-year savings of approximately $200 million to $300 million in 2026," it said.
Three years ago, the company had let go of about 3,500 employees and it incurred about $200 million as part of it. Cognizant, which gave a wage hike in November last year, is yet to decide on a hike for this year. The company will be hiring around 20,000 freshers.
In the March quarter, the company added 6,000 employees and on a y-o-y basis, it added 21,300 employees. On a trailing-twelve months basis, Voluntary Attrition - Tech Services was 12.3% for the period ended March 31, 2026, as compared to 12.3% and 12.0% for the periods ended December 31, 2025 and March 31, 2025, respectively.
In the March quarter, the company modified its definition of 'Voluntary Attrition - Tech Services' to exclude certain categories of negotiated separations.