Case Study: Fortune 500 Manufacturing Corporation reduces severance costs with Conduent Severance Solution

Fortune 500 Manufacturing Corporation - Customer Case Study

A Fortune 500 manufacturing corporation faced the challenge of reducing the overall cost of its severance program for approximately 3,000 employees while still providing them with meaningful benefits during a restructuring. To address this, the company hired Conduent and implemented its Severance Solution service.

Conduent’s solution introduced a Supplemental Unemployment Benefit (SUB) plan, which reduced costs by eliminating FICA taxes and integrating payments with state unemployment benefits. This approach saved the client $3.5 million, a 30% reduction in severance costs. Conduent’s solution enabled the company to use $1.2 million of these savings to extend benefits for former employees who were still unemployed, directing assistance to those most in need.