India’s information technology sector is facing fresh workforce uncertainty as Cognizant considers a major restructuring that could affect up to 15,000 employees globally, while US-based semiconductor giant Qualcomm has begun laying off employees in India as part of a global workforce reduction.
The developments highlight growing pressure on technology companies to restructure operations, improve efficiency and adapt to changing business requirements amid the increasing adoption of artificial intelligence (AI), automation and changing market conditions.
While Cognizant’s proposed job cuts are linked to its AI-focused transformation programme, Qualcomm’s workforce reduction has been described by its CEO as a performance-focused exercise following annual employee reviews.
Cognizant may lay off 12,000-15,000 employees globally
IT services major Cognizant is weighing a workforce reduction that could affect between 12,000 and 15,000 employees worldwide, with the bulk of the impact expected in India, according to a Bussiness report published in May 2026.
The potential layoffs are part of the company’s restructuring initiative, Project Leap, which aims to simplify operations and transition towards an AI-driven business model.
Cognizant announced that it expected to incur restructuring costs of $230 million to $320 million under the programme, including $200 million to $270 million towards severance and other employee-related expenses.
The company had more than 357,000 employees globally at the time, with over 250,000 based in India.
According to industry executives, IT services companies are increasingly moving away from traditional labour-intensive staffing models as clients demand greater productivity and automation.
The proposed restructuring is expected to particularly affect roles that can be automated or delivered more efficiently through AI-powered tools.
However, Cognizant has not officially confirmed the reported figure of 12,000-15,000 job cuts.
Cognizant revises restructuring costs after employee redeployment
In a subsequent development, Cognizant lowered its estimated restructuring costs under Project Leap to $180 million-$250 million after redeploying more employees than initially planned.
The company said it was focusing on cross-training and reskilling employees for roles aligned with its AI strategy. Project Leap is expected to conclude by March 2027.
Cognizant has also indicated that it will continue hiring fresh graduates and experienced professionals even as it reshapes its workforce.
Qualcomm begins layoffs in India: How many jobs are at risk?
Meanwhile, Qualcomm has started implementing workforce reductions across its global operations, including India and the US.
The first round of layoffs in India reportedly began at the company’s Bengaluru facility, with further cuts expected across its operations in phases.
According to reports, around 1,000 or more jobs in India could be at risk, although the actual number is expected to be lower. Qualcomm has not officially confirmed the final number of employees affected.
The company’s CEO, Cristiano Amon, had informed employees in an internal memo in October that the company would undertake a “performance-focused” workforce reduction following its annual employee reviews.
Qualcomm employs approximately 52,000 people globally, including around 20,000 in India. Its major engineering and research facilities in the country are located in Bengaluru, Hyderabad, Delhi-NCR and Chennai.
The restructuring comes amid pressure on its smartphone chip business due to weaker consumer electronics demand and rising memory prices. The company is also expanding into AI infrastructure, data centres and automotive technology as it looks to diversify beyond smartphones.
Qualcomm layoffs: What severance package is being offered?
For employees affected by the layoffs, Qualcomm is reportedly offering a severance package comprising multiple components.
According to details shared by affected employees, the reported package includes:
– Two weeks of gross salary as a base severance payment.
– An additional two weeks of salary for every year of service.
– Pro-rated compensation for incomplete years of employment.
– A lump-sum payment towards health coverage.
– An additional month’s salary for employees who sign their severance agreements within the specified deadline.
Some employee accounts suggest that signing the exit agreement within two days could make employees eligible for the additional month’s salary.
However, the exact terms and benefits may vary depending on individual employment agreements and applicable conditions. Employees have also raised concerns about clauses in the agreements that could waive certain rights to pursue employment-related claims.
Why are tech companies reducing their workforce?
The latest developments reflect a wider restructuring trend across the global technology industry.
Companies are increasingly adopting artificial intelligence, automation and digital tools to improve productivity, reduce operational costs and change traditional workforce structures.