Cognizant to reduce 15,000 jobs; India to face maximum impact

Cognizant, a leading IT services provider, is reportedly planning to cut its workforce by over 15,000 positions globally, with India expected to bear the brunt of these layoffs. According to a recent report from MoneyControl, this move could mark one of the largest tech layoffs of the year, following similar actions taken by major firms like Oracle and Amazon. While the precise number of layoffs has not been officially confirmed, estimates suggest the reductions could range from 12,000 to 15,000 employees. Cognizant's Indian operations are particularly significant, employing over 250,000 individuals out of a total global workforce of more than 357,000. The anticipated layoffs appear to be tied to the company’s projected severance expenses, which are expected to be between $230 million and $320 million. This budget allocation is intended to provide compensation and benefits to affected employees. In India, the average salary stands at around Rs 15 lakh per annum, implying that laid-off workers could receive severance packages amounting to roughly Rs 7.5 lakh each, if they are provided with six months' pay. Under the initiative dubbed “Project Leap,” these substantial severance funds could potentially accommodate layoffs of about 12,000 to 13,000 employees in India alone. Industry insiders have noted a shift in client preferences away from traditional staffing models heavily reliant on entry-level positions. One executive commented that clients are now more hesitant to invest in the training of large groups of new hires. Cognizant’s CEO, Ravi Kumar S, has indicated that restructuring is on the horizon, suggesting a move towards a more streamlined organizational structure globally. During a recent earnings call, he emphasized the company’s transition to a “broader and shorter pyramid” that integrates both digital and human labor.