Cognizant Cuts Project Leap Restructuring Cost Estimate to $250 Million

Cognizant has reduced its estimated expenditure on Project Leap, its workforce restructuring and business transformation programme, to $180 million–$250 million from the earlier estimate of $230 million–$320 million. The company attributed the lower estimate partly to successful employee redeployment and reskilling as it prepares its workforce for an AI-driven operating model.

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The revised estimates were disclosed in Cognizant’s third-quarter 2026 financial results announced on October 29, 2026.

Employee Redeployment Helps Reduce Costs

Cognizant CFO Jatin Dalal said during the third-quarter earnings discussion that the company had been able to redeploy more employees than initially planned.

Also Read: Google Adds 10,000 Employees in Six Months, Headcount Reaches 204,757

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Cross-training and preparing employees for roles aligned with its AI strategy helped reduce the expected workforce separation costs.

Under the revised estimates, Project Leap is expected to involve:

• $150 million–$200 million in employee severance and other personnel-related costs.
• $30 million–$50 million in other restructuring charges.
• $140 million–$160 million in total costs during 2026.
• The remaining expenditure is expected to be incurred through the first quarter of 2027.

The company reported Project Leap-related charges of $51 million during the September 2026 quarter, including $46 million in employee separation costs and $5 million in other expenses.

For the first nine months of 2026, the total charges stood at $135 million, comprising $102 million in employee separation costs and $33 million in other expenses.

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Cognizant’s Workforce Continues to Grow

Despite the restructuring programme, Cognizant’s overall employee headcount increased during the September quarter.

The company reported a total workforce of 359,900 employees as of September 30, 2026, an increase of 3,200 from the previous quarter and 10,100 compared with the same period last year.

Its voluntary attrition rate in technology services stood at 12.6% on a trailing 12-month basis, compared with 13% in the June 2026 quarter.

Cognizant expects Project Leap to generate approximately $200 million in savings during 2026. The savings are expected to be used primarily to fund investments in AI capabilities, integrated offerings, partnerships and employee upskilling.

The programme, introduced in the second quarter of 2026, is aimed at changing Cognizant’s operating model, improving productivity and preparing its workforce for changing technology and client requirements.

The company has not disclosed the exact number of employees affected by Project Leap. The revised cost estimate indicates that employee redeployment and reskilling have helped reduce the expected expenditure on workforce restructuring.