Cognizant Technology Solutions, a major player in the IT sector, is planning to lay off nearly 4,000 employees, which accounts for about 1% of its total workforce. This decision is part of a broader restructuring effort aimed at enhancing its artificial intelligence capabilities and digital services. The initiative, known as 'Project Leap', is projected to cost between $230 million and $320 million, with anticipated savings of up to $300 million this year. Despite the layoffs, Cognizant plans to hire over 20,000 freshers this year, indicating a shift towards a workforce that relies more on automation and AI. The company's headcount was 357,600 as of March 2026, reflecting a net addition of 6,000 employees. Cognizant's recent quarterly earnings showed a revenue of $5.41 billion, marking a 1.5% sequential increase and a 5.8% year-on-year rise, although net profit slightly declined compared to the previous year. This restructuring aligns with a broader trend in the IT services industry, where firms are moving towards automated services and reducing reliance on labor-intensive models.