Cognizant has launched a large-scale restructuring initiative aimed at reshaping its operations and preparing for future demand. The programme, called Project Leap, will see the company invest between $230 million and $320 million, with a significant share directed toward employee-related expenses.
The announcement was made alongside its first-quarter results on 29 April. While the company has avoided explicitly calling it layoffs, a major portion of the budget has been earmarked for severance. Around $200 million to $270 million is expected to be spent on this between April and December, along with an additional $30 million to $50 million for other personnel costs. The changes are planned across multiple regions and teams, making it a global exercise.
The restructuring is designed to modernise how the company operates. The focus is on improving efficiency, aligning services with evolving client expectations, and strengthening capabilities in artificial intelligence (AI). The company also plans to invest in upskilling employees and reorganising teams to better match future business needs.
Cognizant expects the restructuring to deliver financial benefits starting next year. It has projected savings of $200 million to $300 million in 2026, with further gains likely in 2027. These efficiencies are already reflected in a slight increase in its operating margin outlook.
The workforce strategy is also shifting. The company plans to hire over 20,000 fresh graduates in 2026, indicating a stronger tilt toward entry-level, AI-ready talent. This could put pressure on certain mid-level roles as automation expands.
For the first quarter, Cognizant reported revenue of $5.4 billion, marking steady growth. The company also signalled moderate momentum for the upcoming quarter, supported by deal wins and continued investments in AI-led services.
