Cognizant Reportedly Eyes Major Workforce Reduction Amid AI-Led Restructuring; India May Bear Brunt

The cuts, which represent approximately 5% of its total workforce, are described as part of an 'AI-led restructuring' initiative. Most of the layoffs are expected to affect employees based in India, where Cognizant has a significant portion of its staff.

The report, which cites unnamed sources, indicates that the restructuring is driven by the company's efforts to integrate artificial intelligence into its operations, potentially reducing the need for some human roles. Cognizant has not officially confirmed the numbers or the timeline, and the company declined to comment on the report. The news comes amid a broader trend of IT firms adjusting headcount in response to AI advancements.

Cognizant joins other major technology and consulting companies that have announced workforce reductions linked to AI adoption. The company's last major layoff was in 2023, when it cut about 1% of its workforce. The impact on India's tech job market could be substantial, given the concentration of Cognizant's offshore workforce.