More Job losses? Top IT Company offers 'Voluntary Separation' package to send Employees Out!

One of the popular IT firms, Cognizant has offered a Voluntary Separation Package for its US employees who move to the bench between May 1- August 2020. The decision was taken since the number of available opportunities has gone down due to the Coronavirus Pandemic. 

As per ET’s report, an internal email stated that Cognizant is introducing a Voluntary Separation Package (VSP) for US employees moving to the bench a few months down the line, as a result of the pandemic that has decreased demand across functions. 

The package includes pay for 8 weeks and health benefits for 3 months. The employees have been given a time period of 14 days to decide whether they want to take the package or continue on the bench. 

A Cognizant spokesperson told the media house that “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."

The company recently withdrew from 2020 guidance citing that they did not foresee the COVID19 Pandemic which has caused uncertainty.

"Against today’s COVID-19 backdrop, we feel that traditional industry bench policies do not adequately address the interest of the impacted employees.," CEO Brian Humphries recently told the media. 

“Consequently, any employee impacted by demand/supply imbalances may benefit from extended medical coverage and exit packages through the end of the third quarter,” he added.

This news comes at a time when many Tech Giants are indulging in layoffs, pay cuts and even forced resignations in order to cope with the losses incurred due to the pandemic.