Cognizant Plans Second Big Round Of Layoffs While Hiring Freshers : Deep Shift to AI-Led IT Model

Added: 2026-04-30

[00:00:00]IT major Cognizant is set to cut around 4,000 jobs, about 1% of its global workforce. The move comes as slowing demand and a sharp pivot towards AI reshape the company's growth strategy.

[00:00:13]At the heart of this restructuring is a new transformation program, Project Leap. The initiative focuses on ramping up investments in artificial intelligence, digital services, and workforce upskilling.

[00:00:25]While the company hasn't officially confirmed the number of layoffs, signals point to cuts in mid-level roles. At the same time, Cognizant plans to hire over 20,000 freshers this year, highlighting a shift towards a younger, more cost-efficient workforce. The bigger story is the industry-wide pivot.

[00:00:44]IT firms are moving away from people-heavy delivery models towards automation, platforms, and AI-driven services. That means fewer layers of management and more focus on high-skill roles.

[00:00:56]This marks the second major round of layoffs under CEO S. Ravi Kumar.

[00:01:01]Back in 2023, the company cut around 3,500 jobs, largely in non-billable roles.

[00:01:09]Beyond layoffs, Cognizant is also trimming travel expenses and cutting discretionary spending.

[00:01:16]The company has flagged a softer demand outlook. Macroeconomic uncertainty and cautious client spending are making the market more complex. That's reflected in its slightly lowered full-year revenue guidance.

[00:01:30]Experts say this is part of a broader disruption across the IT industry. As AI takes over routine tasks, companies are restructuring to stay competitive.

[00:01:40]Cognizant isn't alone. Tech giants like Oracle, Tata Consultancy Services, Infosys, and HCL Technologies have all reported layoffs or weak growth in recent quarters.

[00:01:52]Even as it cuts jobs, Cognizant is betting big on the future. The company plans to expand in AI advisory services, while also exploring acquisitions like California-based Astreya.

[00:02:05]The message from Cognizant is clear.

[00:02:08]Fewer roles, sharper skills, and a stronger focus on AI.

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