Mass Layoffs in the IT Sector: Now This Company Plans to Let Go of 15,000 Employees—A Massive Blow Awaits India!

Cognizant Layoffs: Under its 'Project Leap' initiative, the company is contemplating laying off approximately 12,000 to 15,000 employees globally. This move is expected to have its most significant impact on India.

Cognizant Layoff News: The wave of layoffs in the IT sector may be poised to begin once again. According to reports, the leading American IT firm, Cognizant, is considering a major reduction in its workforce—a move feared to impact a large number of its employees in India.

It is reported that, as part of its 'Project Leap' initiative, the company is considering laying off between 12,000 and 15,000 employees worldwide. A report by Moneycontrol suggests that the majority of these layoffs are likely to take place in India.

Layoffs to Occur Under 'Project Leap'

On April 29, the Nasdaq-listed company announced that it expects to incur costs ranging from $230 million to $320 million in connection with workforce reductions under its new initiative, 'Project Leap.'

This implies that, as a result of the layoffs, the company may have to bear expenses of $230 million to $320 million (equivalent to ₹1,900–₹2,600 crore) in the form of severance packages. However, the company has not yet released any official figures regarding the exact number of employees who will lose their jobs.

Why Will India Be Hit the Hardest?

Cognizant currently employs over 357,000 people globally, with more than 250,000 of them based in India. Since employee salaries and severance pay in India are lower compared to those in developed nations, the largest share of these workforce reductions is likely to come from India.

Why Is the Company Planning Layoffs? According to reports, the company is prioritizing a shift away from its traditional models to adopt new, AI-based, and lean frameworks. The company is no longer inclined to operate under its traditional "pyramid model," which involves having large numbers of senior and junior employees working together simultaneously. Amid declining demand in the IT sector, the company aims to curtail non-essential expenses and invest in new technologies to achieve cost reductions.