Cognizant could be heading toward one of the biggest tech layoffs of the year, following cuts at companies like Amazon and Oracle. Reports suggest the IT services firm may reduce between 12,000 and 15,000 jobs globally, although the company has not confirmed a final number.
From a US perspective, the move reflects a wider shift in how large tech and consulting companies are restructuring their workforce as clients rethink spending. While Cognizant is headquartered in the United States, most of its employees are based in India, where over 250,000 people make up the company’s largest workforce hub out of a global total of more than 357,000.
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The expected layoffs are tied closely to the company’s financial planning. In its April 29 earnings update, Cognizant said it expects to spend between $230 million and $320 million on severance. That figure has led analysts to estimate the potential scale of job cuts, based on typical compensation packages offered to employees who are laid off.
Much of the impact is likely to be felt in India, where salary levels are lower compared to the US. Industry estimates suggest that severance payouts there could cover several months of pay per employee, allowing the company to stretch its budget across a large number of roles.
The restructuring is part of a broader shift in the tech services model. Industry executives say clients are moving away from the traditional pyramid structure that relies heavily on entry-level hiring. Companies are now less willing to pay for training large groups of fresh graduates, instead prioritizing more experienced talent and automation.
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Cognizant CEO Ravi Kumar S has also signaled that changes are coming across the organization. Speaking during the earnings call, he pointed to a move toward a “broader and shorter pyramid,” combining digital tools with human workers. The approach reflects how AI and automation are beginning to reshape hiring strategies across the global tech industry.
While the final numbers are still unclear, the direction is consistent with what’s happening across US tech. Companies are tightening costs, investing in AI, and reshaping teams, even if that means significant job cuts in the near term.