Cognizant Plans Up to 15,000 Job Cuts, Projects $230–$320M Severance Costs
Cognizant is considering global cuts of 12,000–15,000 positions under Project Leap, with estimated Q2 severance costs of $230m–$320m and most exits in India. The IT services firm posted Q1 revenue of $5.4bn, up 5.8% year-over-year, and a 15.6% operating margin, down 110 basis points.
1. Project Leap Restructuring
Cognizant’s Project Leap initiative will trigger 12,000–15,000 global job cuts, primarily to optimize costs and align its workforce with evolving client demands. The company has set aside $230m–$320m for Q2 severance and restructuring charges, reflecting a significant one-time expense in the 2026 financial year.
2. Geographic Breakdown of Cuts
Most reductions are expected in India, where severance averages half a year’s pay at roughly $15,784 per head, leading to an estimated 12,000–13,000 roles affected. Higher-wage markets such as the US will see fewer cuts due to an average $50,000 severance provision per employee.
3. Financial Impact and Context
In Q1, Cognizant generated $5.4bn in revenue, up 5.8% year-over-year, while its operating margin slipped to 15.6%, down 110 basis points. This follows the NextGen program, which in 2023–24 cut 3,500 roles and reduced 11 million ft² of office space, as the firm seeks more flexible, lower-cost staffing models.