Cognizant to Layoff 400 Senior Executives

Cognizant is planning to lay off around 400 executives in the ranks of directors, senior directors, associate vice presidents, vice presidents. The layoff is planned under Cognizant’s “realignment programme”. The severance package has been reduced from 20 weeks’ salary to three months’ pay plus one-week pay for every year of service completed.

Earlier this month, Cognizant had delayed joining dates of students secured through campus placements to the second half of 2020. “We remain committed to growth and plan to honour more than 20,000 campus offers we have made. The timing of our trainees’ start date in India will be deferred to Q3 (July-September). This will continue to be dependent on lockdowns and school schedules across India,” CEO Brian Humphries had said and reported by Moneycontrol.

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Cognizant said in an statement that the realignment programme will reduce the compensation expense by approximately $140 million on an annualized basis.