Cognizant Layoff News: The phase of layoffs may begin once again in the IT sector. According to reports, the leading American IT company Cognizant is considering a major cut in the number of its employees and this is likely to affect a large number of its employees in India.

It is being told that the company is thinking of laying off about 12,000 to 15,000 employees globally under its ‘Project Leap’. According to Moneycontrol report, most of these layoffs are expected to take place in India.

There will be layoffs under ‘Project Leap’

On April 29, the Nasdaq-listed company said it expected to spend between $230 million and $320 million on laying off employees under its new initiative ‘Project Leap’.

This means that due to retrenchment, the company may have to bear an expense of 230 million to 320 million dollars (1900-2600 crore) as compensation. However, the company has not yet released any official data regarding the number of employees who lost their jobs.

Why is India most affected?

Cognizant currently employs more than 357,000 employees worldwide, out of which more than 250,000 employees work in India. Since the salary and severance pay of employees in India is lower than that of developed countries, the largest part of this cut is likely to be from India.

Why is the company in the mood for layoffs?

According to the report, the company is focusing on moving away from its old model and adopting a new AI-based and lean model. The company is no longer interested in working together under its pyramid model with too many seniors and juniors. Due to declining demand in the IT sector, the company wants to reduce its unnecessary expenses and invest in new technology so that costs can be reduced.

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