Cognizant Technology Solutions floats voluntary separation option for its senior management employees
New Delhi, May3:Cognizant Technology Solutions has floated a voluntary separation option for its employees at the senior management level, at a time when the company is accelerating its move towards digital technology.
This move comes as the company has initiated efforts to trim down its workforce at a larger level this year compared to last year. The Nasdaq-listed company confirmed the development and said that this is part of its overall strategy to accelerate the shift to digital and to deliver high-quality, sustainable growth.
Sources in the company have said that the option has been given to top executives, from the associate director to the top level, including board members and vice-presidents. They added that the compensation would depend on the rank and it would be minimum nine months salary. Further, the sources said that talks were going on for nearly three months now and that people who were receiving a minimum of around Rs 40 lakh as salary were the ones who would come under this programme.
However, the company said that it continues to recruit and hire across all of its practices and is expanding its facilities globally, ensuring that the company 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 the company spokesperson.
The voluntary initiative has been communicated to management-level associates — from director level to senior vice-president — and eligibility is at the discretion of Cognizant leadership.
Queried about compensation, the spokesperson said, “We believe it provides a fair and positive experience for those choosing to leave”, without disclosing the details of the incentive.
The company expects the process to be concluded by the end of the second quarter.
The company is not expecting any disruption in its day-to-day operations or client commitments as a result of this initiative.