Cognizant Technology Solutions has announced a voluntary separation package (VSP) for its US employees.
The Coronavirus crisis has pushed many companies to take tough decisions, with the same line, Cognizant is laying off employees without active projects. The Company is offering a voluntary separation package for US employees who move to the bench between May 1-August 31,2020.
Cognizant sent an e-mail 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,” the company said.
The VSP package includes eight weeks of pay and other benefits for up to three months. Employees currently not employed in ongoing technology projects and who do not wish to opt for the VSP can remain in the associate deployable pool, colloquially known as the ‘bench,’ according to the company.
The employees unable to get deployed on projects in the given period from May 1 to August 31 will have to leave the company without VSP packages.
The company has given 14 days’ time to employees to decide on whether they want to opt for the severance package and leave or continue on the bench.
“Bench” refers to the section of a company’s employees that isn’t working on any project for the time being but remains on the rolls and receives the regular salary.
A cognizant spokesperson said, “In a people-intensive business like ours, effectively managing workforce utilization is a key element of aligning our cost structure with revenue. We routinely manage supply and demand with a bench of unutilized employees. We are enhancing our bench policy by offering additional cash and extended health benefits to those who are or will become unutilized and for whom we, unfortunately, do not foresee future opportunities. As always, we will treat any employees exiting the business with fairness and dignity.”