Cognizant may lay off 4,000 employees, is AI the reason?

Cognizant Technology Solutions may be heading towards another round of workforce reduction, even as it continues to invest heavily in AI and digital capabilities. The possible layoffs come at a time when IT companies are under pressure to manage costs while also preparing for a future where automation plays a bigger role in day-to-day operations. Although the company has not officially confirmed the exact number, a Mint report claims that thousands of roles could be affected. India Today Tech has reached out to Cognizant and will update the article once we receive a confirmation. Meanwhile, here is what the report is claiming about the upcoming job cuts at Cognizant.

Hiring freshers, cutting roles elsewhere?

People familiar with the development told Mint that around 4,000 employees could be laid off at Cognizant, which is close to 1 percent of its global workforce. Interestingly, this comes even as the company plans to hire more than 20,000 freshers this year. The contrast points towards a clear change in hiring preference, where entry-level talent is being brought in at scale while certain existing roles are being reduced.

The layoffs are reportedly being linked to an internal programme called Project Leap, which is designed to strengthen the company’s presence in AI-led services and digital offerings. Cognizant is expected to spend between $230 million and $320 million on this initiative, with a large portion going towards employee-related costs such as compensation. At the same time, the company is aiming to generate savings of up to $300 million within the year through these efforts.

Cognizant's total employee count stood at 357,600 as of March 2026, after adding around 6,000 employees in the recent period. This indicates that the company is not necessarily reducing its size but making targeted changes to how teams are built and deployed.

Industry observers say this approach is becoming common across IT services companies. Phil Fersht from HFS Research noted that companies are steadily reducing reliance on large human teams and leaning more on automated systems, along with AI-driven services and consulting work.

Besides, it is being reported that this is also the second time job cuts are being reported under CEO S Ravi Kumar, who took over in early 2023. Earlier, about 3,500 roles were removed, majorly affecting non-billable positions.

Apart from technology changes, cost management is also likely one of the reasons. Peter Bendor-Samuel of Everest Group said companies are cutting optional expenses such as travel while dealing with disruptions linked to AI.