According to KITU, several employees at Cognizant's offices in Bengaluru, Chennai and other cities had approached the union with complaints of having been forced to resign.
A company spokesperson says it is a performance management measure, which is a process across all companies in the IT industry.
The company has offered complimentary credit card monitoring, dark web monitoring, and restoration services for its employees.
The severance package has been reduced from 20 weeks' salary to three months' pay plus one-week pay for every year of service completed.
There is hardly any room for error and the consequences are terrifying.
After Cognizant, Infosys too has deferred on-boarding of freshers due to COVID-19. More companies are likely to follow.
The US-headquartered company, which has about 2 lakh employees based in India, had previously withdrawn its FY20 guidance amid uncertainties on account of COVID-19 pandemic.
The information technology services provider said it was taking steps to contain the incident, with the help of cyber defense companies, and has also engaged with law enforcement authorities.
It is the second IT services firm to withdraw full-year guidance after Accenture.
This will be paid to employees up to Associate level
"Lev helps businesses simplify and modernise their marketing campaigns using Salesforce Marketing Cloud to provide data-driven insight and personalization across the customer journey, and ultimately drive revenue," Cognizant said in a statement.
The complainants have also sought compensatory damages and a medical monitoring fund for the affected employees
Located in the heart of the city, the new 100,000 sq- ft facility can accommodate more than 1,100 employees, the NASDAQ-listed company said in a statement.
Its revenue grew 3.8 per cent to $4.3 billion during the quarter under review from $4.1 billion in the year-ago period. In constant currency terms, this translated to 4.2 per cent growth.
The company also appointed Vinita Bali, former managing director and chief executive officer of Britannia Industries, as a new independent director, effective February 24, 2020.
Founded in 2016, Atlanta-based Zero Consulting is a privately-held provider of consulting and implementation services for cloud-based configure-price-quote (CPQ) and billing solutions.
The move is a part of the recent restructuring effort undertaken by the company's Chief Executive Officer Brian Humphries.
Cognizant India Chairman and MD added that the company has already made about 15,000 offers in more than 80 engineering institutes across the country.
The reports adds that the employees that were let go off were the ones who had been unable to find billable projects after the stipulated period.
Moneycontrol's Jerome Anthony talks to Corporate Bureau Chief Prince Thomas about what transpired in the sector this week.
Cognizant in its earnings call said that the company is looking at a net reduction of 7,000 employees at the mid-to-senior level to pare down cost
The information technology services provider will also eliminate up to 7,000 jobs in its other units to invest in growth areas such as cloud and internet of things to cushion the impact from a decline in spending by its financial customers.
After Humphries took over in April, he took drastic measures to cut down costs and focus on growth.
Nearly 38 per cent or over 75,000 of Cognizant's India headcount consists of women professionals. Of the company's total base of 2.88 lakh employee, two lakh are located in India.
The company approved 500 head count additions to tap into a growth opportunity, Brian Humphries said in an interview to CNBC-TV 18.