With thousands of people laid off - and most of them with at least ten years with Kroger - that comes out to a hefty amount they have to pay out in severances. Where will that money come from? Any chance we might be looking at pay cuts once this whole thing is over with or am I just being paranoid?
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They could just cut yearly pay increase %. Or re-tweak bonus payouts. Company's typically don't like to offer pay cuts to keep ppl or cut the pay of existing ppl. You can research HR philosophy as to why.
The severance pay is not an issue since most of the people are the older employees and have 4 to 6 weeks vacation. They will recoup that in a year. Also they were making more money and can hire in new employees for less money. The real issue is they are losing a lot of experience and is already showing in major mistakes from the warehouses and the people in technology don't have a clue how to solve issues. Rodney Mcmullen and the cfo are the real problem.
The severance pay is not an issue since most of the people are the older employees and have 4 to 6 weeks vacation. They will recoup that in a year. Also they were making more money and can hire in new employees for less money. The real issue is they are losing a lot of experience and is already showing in major mistakes from the warehouses and the people in technology don't have a clue how to solve issues.
That's what they want, pay as little as possible and report to the stock holders to increase Kroger Stock Value
What severance???
Kroger has sold out a lot of there locations to a foreign country. ( UK ) they are laying a lot of people off if there positions have been eliminated. However they are offering new positions to some. Kroger needed change they was at the top of there game with nowhere else to go. As sad as it is that people are getting payed off after several years of employment I see it as positive state for the future of the company.
I doubt they'd cut pay of existing employees, they'd just lay off anyone who they think makes too much. What they'll do is higher new managers at lower pay.