Cognizant Technology Solutions has revised its cost estimate for Project Leap, its restructuring programme that includes employee severance. The company now expects costs between $180–250 million, down from the earlier estimate of $230–320 million, with most expenses to be booked in 2026.
Despite restructuring, Cognizant’s workforce continues to expand. As of 30 September, 2026, total headcount stood at 3,59,900, up 3,200 from the previous quarter and 10,100 compared to last year. Voluntary attrition in technology services also eased to 12.6 per cent, reflecting improved retention.
Employee separation costs for the quarter were $46 million, but the company balanced this with fresh hiring and a stronger focus on AI enabled delivery. Over 50 per cent of its code is now AI assisted, signalling a shift in how talent and technology combine to drive productivity.
Financially, Cognizant reported $5.7 billion in Q3 revenue, a 4.8 per cent year on year growth in constant currency, beating analyst estimates and outperforming peers such as Infosys, Wipro, HCL Tech and TCS. However, operating margin slipped to 15.4 per cent, and bookings fell 7 per cent year on year, prompting a cut in full year revenue guidance.
Cognizant’s approach highlights the dual challenge of restructuring and growth. While severance costs reflect workforce realignment, rising headcount and declining attrition show continued investment in people. The integration of AI into delivery models underscores how HR must prepare employees for technology enabled roles, balancing efficiency with engagement. It is not just about cost control but about reshaping the workforce for an AI driven future even while keeping retention and capability development at the core.