Work from home resulted workers putting lot of working hours this year, and management decided to cut their benefits. Some boneheads trying to force a culture where unless you know all the latest buzz words in technology, you are deemed obsolete and eventually will be forced out. Mass layoffs coming early 2021, which is quite unnecessary.
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All these cost cutting moves are branded as being a more competitive company coming out of conservatorship. In reality this no compensation and reduction in 401k contribution will drive some to leave which is cheaper than laying them off with a package. And then they can feel like those who didn’t leave are the ones who really want to be here.
For a company that nets billions in a quarter tho, there’s no justifiable reason for cutting the compensation.
Simple & Straight - as the company is moving to get out of conservatorship, the management team (especially the executives) are making sure that they will get the salary bump in the first place.
Also if you notice that in recent two or three years, the number of VPs increased dramatically, which will be something that might affect the whole company's salary equation.
Any reason(s) they cut 2% contribution to 401k? Build more capital for privatization but not making any sense demotivating employees and indirectly asking them to leave. Any idea what groups impacted in early 2021 layoffs?