At least 9 months' pay! Cognizant top execs get voluntary separation option
Cognizant Technology Solutions has floated a voluntary separation option for its employees at the senior management level, at a time when the company is pushing for automation and digital technology and is in the process of trimming its workforce. The Nasdaq-listed US-based company, which has most of its India operations in Tamil Nadu, confirmed the development. Other information technology majors did not respond to calls and emails from Business Standard on whether they were also considering similar schemes.
Cognizant said the option had been offered to senior executives — from director level to senior vice-president. Sources in the company said that those who had annual salaries in excess of Rs 40 lakh might also be eligible for the option. A minimum of nine-month salary will be paid as compensation under the initiative, depending on the executive’s post. The IT firm said the move was related to its overall strategy to accelerate shift to digital and deliver high-quality, sustainable growth. The company will, however, continue to hire across all of its practices and is expanding facilities globally, ensuring that it has the “right expertise to help its clients”. “As part of these initiatives, we are offering a voluntary separation incentive to some eligible leaders, representing a very small percentage of our total workforce,” said a company spokesperson. Asked about the compensation, the spokesperson said, “We believe it provides a fair and positive experience for those choosing to leave.” He didn’t disclose any details.
The company wants the process to be concluded by the end of the second quarter, and is not expecting any disruption in its day-to-day operations or client commitments due to this.
Following the annual appraisal earlier this year, the company initiated efforts to reduce its manpower. The process could see about 2.5 per cent of its staff losing their jobs. The company had 260,200 employees at the end of December 2016. READ MORE ARTICLE SOURCE – BUSINESS STANDARD