Cognizant Technology Solutions (Nasdaq: CTSH) unveiled "Project Leap" on April 29, 2026, alongside its Q1 2026 earnings, a restructuring program that will cut roughly 4,000 jobs across verticals and geographies. The cuts represent about 1.1% of Cognizant's 357,600 global workforce, more than 250,000 of whom are based in India.
The company framed Project Leap as a strategic transformation rather than a cost emergency. In its filing, Cognizant said the program is designed to "accelerate the company's transformation to the operating model of the future by funding investments in its integrated offerings, AI capabilities and partnerships, reshaping productivity through competitive offerings and upskilling workforce."
Total program costs are guided to $230 to $320 million, the bulk of it landing in 2026. The breakdown: $200 to $270 million in employee severance and other personnel-related charges, plus $30 to $50 million in other charges. Cognizant projects $200 to $300 million in 2026 savings, with two-thirds earmarked for reinvestment in growth, AI, and partnerships, and one-third for upskilling existing employees.
Q1 2026 revenue rose 5.8% year-over-year to $5.41 billion, with constant-currency growth of 3.9%. Adjusted operating margin held at 15.6%, and adjusted diluted EPS climbed to $1.40 from $1.23. Trailing 12-month bookings reached $29.6 billion, up 11%, with seven large deals signed including one mega deal. Project Leap is expected to lift full-year 2026 adjusted operating margin guidance to 16.0% to 16.2%.
Project Leap is Cognizant's second large-scale workforce action in three years. The earlier "NextGen" program cut roughly 3,500 non-billable roles. This time the company is pushing further, citing AI-led efficiencies as the lever to "streamline operations and enhance productivity." Cognizant officially declined to disclose the specific 4,000 figure, which was first reported by Livemint.
The same week Cognizant announced these cuts, the company published its "New Work, New World 2026" report, which estimated AI could unlock up to $4.5 trillion in US labor productivity gains. Cognizant is now applying that thesis to its own headcount. The pattern is consistent with what large IT services firms are doing across 2026: trimming billable and non-billable roles to fund AI infrastructure investments and reshape the cost base before clients demand it.
With more than 70% of Cognizant's headcount in India, Project Leap will likely concentrate in Indian delivery centers where the company built its global services footprint. Specific country-level breakdowns have not been disclosed, but Cognizant's restructuring follows similar moves at TCS, Infosys, and Wipro, each citing AI productivity tools as a reason to right-size traditional services teams.