Layoffs in Indian IT? Cognizant says 400 of its top-level executives have accepted its voluntary separation package

Information technology firm Cognizant said around 400 of its senior executives have accepted its voluntary separation package which will help the multi-national corporation save around $60 million dollars annually, PTI reported on Sunday.

The company had offered some of its senior staff up to nine months of salary.

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The international company had pitched the package, which offers up to nine months of salary, to some of its senior executives based in the United States and India in May.

The firm has not specified how many of the employees were based in India, which accounts for a sizable number of its 2.56 lakh workforce. “Of the $39 million (approximately Rs 248 crore) of realignment charges, $35 million was for the roughly 400 associates who accepted our voluntary separation package,” Cognizant Chief Financial Officer Karen McLoughlin said at a recent investor call.

The CFO said the step will help increase profits. The firm’s staff strength was reduced by around 4,400 people in June from the March 2017 quarter. “Our attrition level was higher than normal given reductions resulting from performance evaluations and the voluntary separation programme,” McLoughlin said.

Articles on the topic:

• 400 cognizant senior employees accept nine months salary as separation package - Yahoo Finance 
• 400 senior Cognizant employees accept voluntary separation package - Business Standard 
• Cognizant says 400 senior executives take voluntary separation package - TOI
• 400 executives accept Cognizant's voluntary separation package - Economic Times