India's IT sector is facing fresh job uncertainty.
Cognizant, a large IT services company, is weighing cuts that could affect 12,000 to 15,000 employees worldwide.
Most of the impact is expected in India.
At the same time, US chip maker Qualcomm has started laying off staff in India.
Both moves come as companies adopt more artificial intelligence (AI) and automation.
Why does this matter to you? India has a large share of the IT workforce.
Cognizant had more than 357,000 employees globally, and over 250,000 of them were in India.
Qualcomm employs around 20,000 people in India.
Graphic: News Anek, from the facts in this report
Key points
- Cognizant may cut 12,000 to 15,000 jobs worldwide, but has not officially confirmed the figure.
- The cuts are part of Project Leap, a shift to an AI-driven business model.
- Qualcomm has begun layoffs in India, starting at its Bengaluru facility.
- Qualcomm's CEO calls the job cuts performance-focused.
What is Cognizant planning, and why?
Cognizant's plan is called Project Leap.
It aims to simplify operations and move the company towards an AI-driven business model.
The roles most likely to be affected are those that can be automated or done more efficiently with AI tools.
The company first expected restructuring costs of 230 million to 320 million dollars.
Of this, 200 million to 270 million dollars was for severance and other employee expenses.
Later, Cognizant lowered its estimate to 180 million to 250 million dollars.
It did so after moving more employees to other roles than it had planned.
The company is also training staff in new skills linked to its AI strategy.
What is happening at Qualcomm?
Qualcomm has started cutting jobs across its global operations, including India and the US.
The first round in India reportedly began at its Bengaluru facility. More cuts are expected in phases.
Reports suggest around 1,000 or more jobs in India could be at risk. The actual number may be lower.
Qualcomm has not officially confirmed the final figure.
CEO Cristiano Amon told employees in an internal memo in October.
He said the reduction would be performance-focused, following annual employee reviews.
The company is also under pressure in its smartphone chip business, due to weaker demand for consumer electronics.
So what happens next for employees?
Cognizant says it will keep hiring fresh graduates and experienced professionals.
Project Leap is expected to conclude by March 2027.
For Qualcomm, more cuts are expected in phases. Neither company has confirmed the final job numbers yet.
For a family that depends on one salary, such news can affect EMIs, rent and savings, so official updates matter.
Exam Corner
UPSC GS Paper 3 · Economy: IT sector layoffs and AI
What's the news
Cognizant is weighing a restructuring that could affect 12,000 to 15,000 employees worldwide, mostly in India. Qualcomm has begun layoffs in India, starting at its Bengaluru facility.
Background
- Cognizant's restructuring programme, Project Leap, aims to simplify operations and move towards an AI-driven business model.
- Cognizant has not officially confirmed the 12,000 to 15,000 figure. It lowered its restructuring cost estimate after redeploying more employees.
- Qualcomm says its job reduction is performance-focused, following annual employee reviews.
Facts for Prelims
- Qualcomm's major engineering and research facilities in India are in Bengaluru, Hyderabad, Delhi-NCR and Chennai.
- Cognizant had more than 357,000 employees globally, with over 250,000 based in India.
- Project Leap is expected to conclude by March 2027.
Content for Mains
- Significance: IT services employ large numbers in India, so workforce changes affect many families and cities.
- Main issue: Companies are shifting from labour-heavy staffing to AI and automation, which reduces some roles.
- Challenges: Reskilling workers for new AI roles while managing job losses and severance costs.
- Way forward: Reskilling, transparent communication and support for displaced workers can ease the transition.
Practice question: Discuss the impact of AI and automation on India's IT services sector. Suggest measures to protect workers during corporate restructuring.
Prelims practice questions
Q1. What is the name of Cognizant's restructuring programme?
- Project Bridge
- Project Leap
- Project Shift
- Project Connect
Show answer
Answer: B. The article says Cognizant's restructuring initiative is called Project Leap.
Q2. Where did the first round of Qualcomm's layoffs in India reportedly begin?
- Chennai
- Hyderabad
- Bengaluru
- Delhi-NCR
Show answer
Answer: C. The article says the first round of layoffs in India reportedly began at the Bengaluru facility.
Key terms
- Restructuring: Changing how a company is organised, often to cut costs or work more efficiently.
- Severance: Money an employer pays to an employee who leaves the job.
- Redeployment: Moving employees to other roles inside the same company.
More stories for exam preparation: UPSC Today
These points come from this news report. Check them with standard sources such as NCERT books and PIB before your exam.
