Cognizant has entered a critical period of transformation as the organization looks to embrace the new age of artificial intelligence.

This is amid the growing need for IT companies to trim down their operational budgets as they look forward to a world dominated by automation in all aspects of work. In its quest to transform itself, Cognizant has initiated a comprehensive restructuring program known as Project Leap, which is aimed at fundamentally changing the way the organization conducts its business.

 However, even though the actual number of job losses has not been officially revealed, Mint reports suggest that approximately 4,000 employees, constituting about 1% of its entire global workforce, may lose their jobs. According to reports from company executives, the effect will not only affect many departments but will also vary in intensity because the objective is to balance the workforce composition and not just the numbers.

As part of an announcement made together with the release of its first quarter figures on April 29, the reorganization is estimated to have a cost of $230 million to $320 million, according to information published by Financial Express. In particular, about $270 million will go into costs related to its employees. Jatin Dalal, the company’s chief financial officer, referred to Project Leap as a “global programme.”

However, the transformation is not just about reduction but also about change. Cognizant is looking to recruit more than 20,000 graduates by 2026, implying that they have shifted their focus to recruiting graduates who possess contemporary skills and are ready for AI-based work. 

In other words, Cognizant is not just cutting jobs but transforming them.