Cognizant may lay off 12,000 to 15,000 jobs globally, India to be hit the hardest: reports

Cognizant, an IT services major, is moving forward to a heavy reduction in the workforce that could reportedly impact 12,000-15,000 employees worldwide, with the highest of layoffs expected in India, as per reports.

The firm reportedly said that it expects to incur between $230 million and $320 million in the severance costs under its newly announced Project Leap, without disclosing the number of potential job losses.

According to reports, the company had not responded to queries at the time of publication. The estimated scale of layoffs is derived using rough, back-of-the-envelope calculations based on typical salary structures and severance practices across different regions.

In India, the average annual salary is assumed to be around ₹15 lakh. With severance generally estimated at about six months of pay, the cost per employee comes to roughly ₹7.5 lakh. Applying this assumption to a large portion of the restructuring budget suggests that the impact in India alone could affect approximately 12,000 to 13,000 employees, noted the reports.

In higher-cost regions such as the United States, average salaries are significantly higher, often around $100,000 per year. With severance ranging between four to six months, the cost per employee increases to nearly $50,000. As a result, fewer employees can be impacted in these regions for the same level of allocated funds. When these assumptions are combined across geographies, the global estimate of job cuts falls in the range of 12,000 to 15,000 employees.

These figures remain indicative, as they are based on broad assumptions regarding salaries, tenure, and geographic distribution. The final number may vary depending on how the restructuring is implemented. Company leadership has indicated that this is a global initiative affecting multiple parts of the organization, alongside a shift toward a leaner workforce structure that integrates both digital and human labour, as per reports.

The anticipated layoffs come amid a wider trend in the IT services industry, where companies are restructuring due to reduced discretionary spending, increased automation, and the growing adoption of AI-driven delivery models. Firms with significant exposure to traditional services such as application development and maintenance are facing mounting pressure to improve efficiency and margins.

This trend is not limited to a single company. Several major IT firms have undertaken similar restructuring efforts over the past year. Earlier reports indicated that large-scale job cuts have been announced across the industry, reflecting a broader shift toward cost optimization, automation, and streamlined workforce models. Even in previous restructuring initiatives, companies have reduced headcount and scaled down physical office spaces, underscoring a long-term transition toward more efficient, technology-driven operations.