Cognizant to cut 4,000 jobs as AI push, weak demand weigh on outlook

Subscribe to enjoy similar stories.Cognizant Technology plans to cut about 4,000 jobs, or roughly 1% of its workforce, two people with knowledge of the matter said, even as slowing demand and a push toward automation weigh on growth and prompted the company to lower its full-year outlook.The company on Wednesday announced Project Leap, a transformation programme involving increased investments in AI, integrated digital offerings, and workforce upskilling. Cognizant expects the programme to cost $230-320 million, including $200-270 million of employee severance and other personnel-related costs, but generate savings of as much as $300 million this year.While Cognizant did not put a number to the employees affected by the restructuring, the management said in a post-earnings analyst call that more than 20,000 freshers would join this year, suggesting reductions in mid-level roles.

Headcount rose by 6,000 to 357,600 at the end of March 2026.Cognizant’s move follows similar actions across the industry. Oracle Corp.

laid off 19% of its workforce at the start of the year, while Tata Consultancy Services cut 2% of its workforce last summer.“They, like many peers, are trying to lift revenue per head and pivot away from people-intensive delivery toward more automated, platform-based services. Initiatives such as Project Leap are fundamentally about stripping out complexity in the middle of the organization and reweighting investment toward higher-value skills in AI, advisory work, and deep industry solutions,” said Phil Fersht, chief executive of HFS Research.Expected savings from Project Leap enabled the company to raise its 2026 adjusted operating margin guidance from expansion of 10-30 basis points to 20-40 basis points,