Cognizant Technology Solutions might be getting ready for another round of layoffs. This news comes as the company is spending a lot on Artificial Intelligence (AI) and digital services. Many IT companies are trying to reduce costs while preparing for a future where automation’s more important.
A report by Mint says thousands of jobs might be affected. Cognizant has not officially confirmed the number. India Today Tech has asked Cognizant for a statement. Will update this article when we hear back.
Here is what the report says about the job cuts at Cognizant:
- Hiring new employees cutting other roles?
People who know about this say around 4,000 employees might lose their jobs. This is 1 percent of Cognizants total workforce. Interestingly Cognizant plans to hire over 20,000 employees this year. It seems the company wants to hire young people while reducing some existing roles.
- The layoffs might be linked to a program called Project Leap. This program aims to improve Cognizants AI and digital services. Cognizant will spend between $230 million and $320 million on this. A big part of this money will go to employee costs.
Cognizant had 357,600 employees in March 2026. They added around 6,000 employees recently. This shows that Cognizant is not getting smaller but changing how it builds and uses its teams.
- Industry experts say many IT companies are doing this. They are using people and more automated systems and AI services.
- This might not be the time Cognizant has cut jobs under its current CEO, S Ravi Kumar. He started in 2023. Before around 3,500 jobs were cut, mostly affecting -billable positions.
- Besides technology changes cost management might be another reason. Companies are cutting costs, like travel expenses while dealing with AI changes.