Cognizant comes up with Voluntary Separation initiative for top execs

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Cognizant Technology Solutions Corp., which attracted a lot of attention after laying off 6,000 employees recently has come up with a unique offer for senior executives. The company is offering executives of Director and Vice-President Level a Voluntary Separation scheme wherein they will be paid a separation package if they choose to leave the company.

Cognizant
Executives who earn as much as Rs.40 lakh annually could be eligible under the scheme.

What makes this scheme different from typical ‘firing’ scenarios is the compensation on offer. While individuals at Director level will be paid 9 months’ salary, those at VP designation will be paid 6 months’ salary.

The company is looking to restructure the organisation, with focus on digitisation. While executives have the option to avail this offer, the company will take the final call, with the leadership deciding on who the beneficiaries will be.

Top executives have been given time till May 12 to inform the leadership about their decision.

Cognizant currently has over 2.5 lakh employees across the globe, with close to 2 lakh employed in India. Officials at the company stated that this move will not result in reduced hiring, with it scaling up in certain departments.

Cognizant’s revenue for the previous year stood at $13.49 billion, an 8.6 per cent increase from 2015. It’s earning per share (GAAP EPS) stood at $2.55, a drop of $0.10 compared to 2015.

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