Cognizant to give 9-month salary as voluntary separation to top executives

Cognizant Technology Solutions has offered its top executives a voluntary separation package, a part of its plan to shift operations to automation and digital technology.

By BT Online  
Thursday, May 4, 2017

Cognizant Technology Solutions has offered its top executives a voluntary separation package, a part of its plan to shift operations to automation and digital technology.

The global IT major which has over 2.6 lakh employees, confirmed the development but did not disclose the number of people that have been offered this option but indicated that it represents a very small percentage of its workforce.

"This voluntary initiative is being communicated to management-level associates-from director-level to senior vice president-and eligibility is at the discretion of Cognizant leadership ," said a spokesperson of the company.

Employees who had annual salaries in over Rs 40 lakh might also be eligible for the option, reported The Business Standard.

It is said that a minimum of nine-month salary will be given out to the considered employees based on their post.

The spokesperson did not disclose any further details regarding the compensation but ensured it was fair and gave a positive experience for those who decided to leave the company.

The IT firm said that this move was a part of its overall startegy to move to the digital landscape and deliver sustainable growth.

"We are focussed on making sure that we have the team, capabilities and IP to serve our clients in the digital era. Doing so will make Cognizant even stronger and we are confident we are well-positioned to drive long-term shareholder value as we continue investing in our employees and in exciting new areas of growth,," the spokesperson said.

It will continue to expand its operations globally and seek the 'right expertise to help its clients'.

Cognizant assured no disruption of day-to-day operations but aims to wind up the process by the end of the second quarter. Following its annual appraisals this year, the company reportedly could see nearly 2.5 per cent of its staff being laid off this year.

The company reported revenues of $13.49 billion, up 8.6 per cent year-on-year, in 2016, lower than its projection of 10-14 per cent.

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