Looking to leverage artificial intelligence and digital capabilities, Cognizant Technology Solutions is reportedly planning to cut around 4,000 jobs. The job cut marks approximately 1% of its global workforce, making a significant impact among the workforce and their dependents in the company.

The IT companies are increasingly focusing on cost cutting and optimisation strategies while preparing for a future where automation plays a larger role in daily operations. Notably, the impacts will be felt on the mid-level roles as the company is expected to hire over 20,000 freshers this year.

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The move aligns with the company’s recently launched initiative the Project Leap, which focuses on boosting investments in integrated offerings, strengthening AI capabilities and partnerships, enhancing productivity, and upskilling the workforce.

The new initiative, according to the company, might generate savings of approximately $200 million to $300 million in 2026, which could eventually support an increase in its 2026 adjusted operating margin guidance

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Meanwhile, Cognizant anticipates incurring costs between $230 million and $320 million, largely in 2026, including $200 million to $270 million in employee severance and personnel-related expenses, along with $30 million to $50 million in other charges.