IT jobs

Cognizant has unveiled a global restructuring initiative named Project Leap, signaling potential job reductions as the company reshapes its business model for the AI era. The programme is expected to cost between $230 million and $320 million, with the bulk of expenses to be booked in 2026. Out of this, $200 million to $270 million has been earmarked for employee severance, raising concerns over possible layoffs across multiple regions, including India, where the company employs a significant portion of its workforce. While Cognizant has not disclosed the number of employees likely to be impacted, industry estimates suggest the cuts could run into thousands over the next several months. During the company’s earnings call, CFO Jatin Dalal said the programme would affect various parts of the organization globally, but declined to specify exact figures. He noted that the restructuring is aimed at preparing Cognizant for its future operating model. The move reflects a broader transformation underway in the IT services sector, where companies are increasingly redirecting investments toward artificial intelligence, cybersecurity, cloud, and data services, while reducing dependence on legacy roles. Similar trends have been seen across the industry, including workforce reductions at peers like TCS. For the March quarter, Cognizant reported revenue of $5.4 billion, marking a 5.8% year-on-year increase in dollar terms. The company has projected full-year 2026 revenue between $22 billion and $22.6 billion, and also raised its operating margin guidance to 16%-16.2%. Management said Project Leap is expected to further boost profitability through improved efficiencies. Despite the restructuring, Cognizant continues to expand selective hiring. Its total workforce has risen to approximately 350,000 employees, after adding 21,300 workers year-on-year. The company also plans to hire over 20,000 graduates in 2026, matching last year’s intake. CEO Ravi Kumar said the future of the industry lies in moving beyond a traditional people-based services model toward platform-led, outcome-driven business models powered by AI. He added that companies willing to own operational outcomes for clients would benefit from the next phase of growth. In a parallel strategic move, Cognizant is acquiring Astreya, an AI infrastructure and data centre services firm, in a deal worth around $600 million. The acquisition is aimed at strengthening Cognizant’s capabilities in the fast-growing AI infrastructure space, as global spending on data centres and hyperscaler capacity accelerates rapidly. Source: Economic Times