some will be asked to take pay cuts to reduce debt!
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They can recycle old tricks from the great recession. In the US, they laid off and flattened organizations. Laid off half of the team, added responsibilities to the people left, changed their job descriptions and titles, and reduced the pay ranges for the 'new' titles/positions. Someone who was in the middle of the pay range of the old title, was now so far over the max, that there was no future opportunity for pay raises. They were also vulnerable, at the company's discretion, to have their pay lowered to the new maximum for the new title. The result is you either take it or leave it.
There are many tactics the company can take to attempt to slow the circling down the toilet drain. First is laying off 50% of workforce. Sorry. Can they do this without revenue impact? Unlikely.
They could also offer significantly reduced salaries in exchange for keeping your job. Pr--k move? Maybe. They can also reduce the cost of layoffs by changing policy around severance, similar to the “unlimited vacation” change. Savings are kind of limited but the situation is dire. Bulldozing all non-revenue buildings in Webster, getting off the tax rolls and being able to sell the property? The answer illuminates what is wrong with XRX. Other ideas include actually having Xerox or Lex equipment in Best Buy, Staples, Costco, etc. SB has not entertained any of these ideas.
@b4 never going to happen. The shareholders and board do not care. SB asked for more comp for himself and the EC for 2025 and the board/shareholders approved it. You guys are too far out of the loop and don't know how to research to understand what is really happening. Additionally, the EC taking less comp will do almost nothing to help because their comp is primarily non cash.
He-l no at this point unless executives convert their paychecks to survival of the company. To b clear; that means no pay other than their pay that does not include anything above (stock issues, bonus, etc.) when they step up and do this; I do not see how any fiduciary conscious Corporate Board could support this. Opening up the Corporate Board to lawsuit.
@ak voluntarily? Which country?
@ar What?????????????????????????????????????????????? Not this SLT.
Beware that sometimes this is SLT and other high level employees that take these cuts as a way to communicate we are feeling the pain with you when there is no pay raises or cost of living adjustments.
@ap Reality is if you make it though this week then you have a another 60-90 days of not taking a pay cut.. the next round is right around the corner.. Its time for people get there financial houses in order.. have 9-12 months of savings set aside for the time that your hit either by the next round, your position is sourced overseas or chapter 11 causes even more dramatic cuts.
Where did you hear that? Our pay has been stagnant for years already while the cost of living continues to increase. We don’t even get cost of living adjustments. That in and of itself is like a pay cut already.
@ak Listen. The company currently has 2x the proper # of employees and revenue is on a permanent decline. Interest is going up. There is no scenario in which you can secure you job. Diversification 15 years ago was the only play, and UB sc--wed that up.
I’ve offered to take a pay reduction in order to help with the corporate debt and secure my job.
@a8 And now they cant hide behind that this year.
Too bad we can't just come together and vote more people off the island and take over there work and keep our current pay.
@aa nah not in the UK dude. Protected
@a2 precisely! That's about one of the only things they would be strategic about.
I've been saying for a long time that the things they were doing to employees were a part of their strategy for resignations so they don't have to pay severance.
@a9 Ask? They can just do it, and then you can decide whether to stay.
They can ask but can’t do anything about it if we say no
I remember years ago we took a 2.3% pay cut to offset payroll, in return we were allowed to take an additional five days vacation. I believe that was around the same time where the purchase vacation came in to play. It was the following year.
How will that reduce the debt, they currently can’t pay it off as it stands. Hence the warrants they issued. Reducing opex will only lengthen the the lifespan but won’t be enough to fix the issue. The company is far away from being profitable, going into harsher market conditions.
If this is true I would recommend the people being offered to turn down the offer.
You can always say no thanks. As we say in Covid, all pay cuts are voluntary
@a3 most likely sales
Any idea when this would happen? Or how much? Or which employees may be targeted?
I guess that's one way to get rid of more people without RIFs
can confirm