Employees with over Rs 40 lakh in annual salaries or those at the director and senior VP level are being considered.
Technology solutions firm Cognizant is working on a voluntary retirement scheme for its senior staff, in a bid to control wage costs, while it looks to digitise and automate its operations.
Cognizant hasn’t yet disclosed the number of people who have been offered VRS, although the IT firm, which has over 2.6 lakh employees, reportedly shares that it represents a very small percentage of its workforce.
Speculations suggest that employees with over Rs 40 lakh in annual salaries or people at the director and senior VP levels are being looked at for the option. It is also being said that as part of the VRS, a salary of minimum six to nine months will be given out to the employees concerned, based on their position.
Apparently, the voluntary initiative is being communicated to management-level associates—from director-level to senior vice president. However, the eligibility is at the discretion of Cognizant leadership.
The company hasn’t yet elaborated much on the compensation being offered, but ensured that it was fair and also assured that it provided a positive experience for those leaving.
The move comes in as part of Cognizant’s overall strategy to move to the digital landscape and deliver sustainable growth. The company is focussed on making sure that it has the team, capabilities and IP to serve its clients better in a digital era.
Cognizant looks to further expand its operations globally and seek the ‘right expertise to help its clients’. It aims to wind up the process of voluntary retirements by the end of the second quarter. In addition, it is also being believed that following its annual appraisals this year, the company could cut down nearly 2.5 per cent of its staff.