About 400 senior executives of Cognizant have accepted the company’s voluntary separation package (VSP), a move that the US-based company said will help it save about USD 60 million annually. In May, the company had initiated a voluntary separation programme, offering up to nine months of salary as part of it to some of its top-level executives in the US and India. “Of the USD 39 million of realignment charges, USD 35 million was for the roughly 400 associates who accepted our VSP. We expect approximately USD 60 million of annualised savings as a result of the VSP,” Cognizant CFO Karen McLoughlin said at a recent investor call. “Our attrition level was higher than normal given reductions resulting from performance evaluations and the voluntary separation programme,” McLoughlin said.

Source: Hindustan Times August 06, 2017 07:18 UTC