Cognizant has come up with a new way to let go employees to cut costs. Here it is

Speculations were rife that Cognizant, which is undergoing slow growth, would lay off at least 1,000 employees to cut costs.

Now, the company has come up with another way to let go off employees. Cognizant is offering VRS to senior executives as it seeks to reduce costs.

Cognizant has given an option to its D+ category employees, which includes directors and senior VPs to exit the organisation by accepting either six or nine months' pay as severance package, depending in which category the employee sits.

As per various reports, nearly 1,000 employees are eligible for the VRS.

"We are offering a voluntary separation incentive to some eligible leaders, representing a very small percentage of our total workforce. It is related to our overall company strategy to accelerate our shift to digital and to deliver high-quality, sustainable growth," a Cognizant spokesperson told ET.

Meanwhile, employees at Cognizant are also facing heat due to lower variable pay and less increments.

Cognizant has been experiencing slow growth and lowered its growth guidance thrice last year. For 2016, the company registered revenues of $13.5 billion, up 8.6% from $12.42 billion for 2015. However, it raised guidance for 2017, estimating revenue to be from $14.5-14.84 billion.