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The job cuts by Cognizant are rocking the Indian IT industry. As part of a massive restructuring program, Project Leap, that’s projected to affect up to 15,000 jobs, thousands of people — most of them in India — wonder if they’re next.
There’s a clear-eyed view of what’s going on, who will be most at risk and what you can do right now to safeguard your career.
What Is Project Leap — And Why Is It Happening?
Cognizant’s Project Leap isn’t just the thinning of the herd. It’s not a complete refurbishment; it’s a complete overhaul. The company has revealed that it will pay between $230 million and $320 million for the severance costs, while industry sources estimate that this represents between 12,000 and 15,000 job cuts worldwide, of which more than 250,000 of Cognizant’s 357,000+ staffers are in India.
CEO Ravi Kumar S has been clear on the path ahead, and this is an aim to build a “broader and shorter pyramid”, with fewer entry-level positions, fewer middle-level positions, and more digital tools and AI-driven delivery. The Cognizant layoffs 2026 fall under a general trend among IT service companies where their clients are seeking less bloated ways to streamline and make their service delivery more effective than using cumbersome consultant teams consisting of several layers.
Which Positions Are Most Vulnerable?
The Cognizant restructuring roles that were impacted are all about the IT delivery revolution. The traditional pyramid structure (with thousands of freshers and junior associates at the bottom, middle management in the middle, and a very small group at the top) is becoming a negative and not a positive.
The departments facing the largest Cognizant layoffs (which apply to workers in India) are:
Entry level associate and fresher positions, as clients have no interest in investing time in training a large number of employees in-house. There is no room for this type of investment when only the learning phase is concerned – this window of opportunity has passed for good.
Manual quality assurance and testing functions can be easily automated. What used to need a whole team is now being replaced by AI-powered testing tools. These are some of the first jobs that are at risk in the IT sector in India when there is a restructuring.
Tasks in departments like BPO and back office including tasks such as data entry, simple support, and basic documentation are in the category of repetitive workflows that are ripe for automation.
Middle managers who were created to manage big teams of juniors are also being looked at. As teams become smaller, the demand for the managers who oversee the teams decreases.
Legacy technology specialists (LTS) are the ones whose skills are limited to older platforms that do not support cloud, AI or modern DevOps development, and who are struggling with a long-term decline in demand.
The Bigger Picture: IT Job Cuts India 2026
Cognizant is far from being an exception. The IT job cuts in India in 2026 are picking up in the industry. In a recent press release, Freshworks has revealed its workforce reduction plan, which amounts to an 11% reduction due to AI product and engineering changes.
Atlassian has recently announced a reduction in its employee base by 10%. The cryptocurrency company Coinbase announced layoffs accounting for 14% of its workforce. PayPal, one of the leaders in fintech, plans to save $1.5 billion in total and cut its workforce significantly.
The reasons for the Cognizant layoffs 2026 align with the trends seen across the industry—such as reduced client spending, the elimination of repetitive tasks by automation, and more output from smaller teams due to AI tools. The companies becoming more flexible are securing the next round of business – and they’re doing so with fewer employees.
How to Stay Safe: A Practical Guide for IT Professionals in India
Those who are Cognizant employees need not be pessimistic about the future if they decide to take the right action at the right time. Follow these simple tips to avoid being let go in the IT industry in India:
Learn more about AI and automation. Companies want to retain professionals who can work with AI tools, rather than just with legacy tools. For instance, the AWS Training, Coursera, or Google Cloud Skills Boost certifications demonstrate a foundation in AI to prospective employers.
Go further up the value chain. The roles in solution architectures, AI/ML engineering, cybersecurity, cloud infrastructure, and product management are far more protected. If you are in a weak position, begin developing skills that will help you progress upward.
Create a portfolio of your work. Restructuring is a time when there is a high need for internal visibility. Be a part of impactful projects, report successes, and ensure that the right leaders are aware of what you are bringing!
Diversify your options. Do not delay updating your LinkedIn or resume after receiving a pink slip. Maintain a professional network and update your profile – even if you feel secure now.
Know what severance is and what it entails. If there are ever any lay-offs at Cognizant in 2026, then being aware of all your rights when it comes to notice periods, gratuity, PF, etc., will certainly place you in an advantageous position during negotiations.
Final Thought
Cognizant job cuts 2026 aren’t a headline; they are a signal. India’s IT industry is in the throes of the biggest transformation in its last two decades. Those who see the trend early on and invest in becoming less replaceable will be more successful on the other side.
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