Saturday, September 27, 2008

More companies to announce salary cuts, rather than layoffs

Letter to CEOs of companies:
Dear Sir, In light of the current economic crisis, it will be better for more companies to apply salary cuts, instead of layoffs, especially companies that have higher salaries like high-tech/finance, etc. Such layoffs will depress the economy further, and the people who remain on board the companies will have to work harder, which will have much more toll on their body and mind. On the other hand, if there are salary cuts, not only will everyone be weather the storm, but also it will bring US salaries closer to those of other countries, and will have much more overall ameliorating effects on everyone. Also there needs to be more salary cuts in executive management, than in the actual hands-on producing employees, thanks to more Web2.0 collaboration efficiencies amongst producing employees.

Also, there should be more mergers and consolidations amongst players in the same industry(names like Broadcom, AMCC, PMC Sierra, come to mind as players in same industry) and lowering of salaries across the board.

Can California and US govt provide tax breaks to companies who simply reduce salaries and not lay off workers ? This will help in solving the current economic crisis to great extent.

Related article :
Published at :

Wrote :
Intel CEO : ,
Cisco CEO :;
Sun Micro : ,
Ebay :,
Yahoo : , 
Microsoft : ,
Nortel : ,
Micron :,
Broadcom :
PMC Sierra :

California Government :

Post a Comment