Around 400 senior executives of Cognizant Technology Solutions have accepted the company’s voluntary separation programme (VSP), a move the US-based company has initiated a few months back.
According to experts the VSP programme initiated by the US-based company in May will save around US$ 60 million annually.
CFO Karen McLoughlin said, “In Q2 we took some actions that will improve our cost structure and operating margins while allowing us to continue to invest in the growth of business.”
He added that the actions taken have resulted in approximately $39 million of charges related to the realignment program in the second quarter.
The company said that $35 million out of $39 millions of realignment charges was for the associates who accept its VSP.
The company also reported a drop of 4,400 jobs in its headcount, pushing its employee strength to 256,800 at the end of June from 261,200 in March.