Cognizant offers voluntary separation package for US staff as Covid hits biz

New Jersey headquartered Cognizant has announced a voluntary separation package (VSP) for its US employees. Due to the slowdown in demand and fewer contracts, the company is shedding the number of employees without active projects.

Agencies
Mumbai: New Jersey headquartered Cognizant has announced a voluntary separation package (VSP) for its US employees. Due to the slowdown in demand and fewer contracts, the company is shedding the number of employees without active projects.

ET has accessed an email sent to employees earlier this month which said: “The Covid-19 pandemic has caused a decrease in demand across a number of functions which has reduced the number of open positions available for associates in the Associate Deployable Pool (ADP).” “To manage costs and provide associates with an alternative to ADP, we are introducing a Voluntary Separation Package option for all US associates who move into the ADP between May 1 and August 31, 2020, it said. The package would include eight weeks of pay and other benefits up to three months. Employees who are currently not employed in ongoing technology projects and do not wish to opt for VSP have the option of remaining in the Associate Deployable Pool.

Staffers unable to get deployed on projects between May 1 and August 31 would have to separate from the company without separation packages. Employees would have a two-week period which starts on the first day of their bench or ADP program to decide if they would opt for VSP or continue on bench. Responding to queries, a spokesperson for Cognizant said: “In a people-intensive business like ours, effectively managing workforce utilisation is a key element of aligning our cost structure with revenue. We routinely manage supply and demand with a bench of unutilised employees. We are enhancing our bench policy by offering additional cash and extended health benefits to those who are or will become unutilised and for whom we unfortunately do not foresee future opportunities. As always, we will treat any employees exiting the business with fairness and dignity."

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