HP to do salary cuts instead of lay offs

Lay offs are bad news but Hewlett Packard won’t be laying off their employees due to recession. But rather, the company has decided to do salary cuts.

Starting at the top executives, HP will give company wide pay cuts. Mark Hurd, HP’s top CEO will give 20 percent salary cut. About 15% will be cut from the Executive Council’s pay, 10% from some executives, 5% from exempt employees, and 2.5 from non-exempt employees according to CrunchGear.

This can be good news for HP employees, at least they are still secure of their jobs. A smart move by HP but I’m not sure if this will save the company in the long run.

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Comments (3)

  1. [...] these reports and talks about the recession, layoffs, salary cuts, and price slash can be a bit depressing. It’s true that most employees can only do so much [...]

  2. HP/EDS Employee says:

    Its like this … cut ALL bonues to 0% Have everyone work for their current base salary. Aren’t bonues rewards for well and growing the company. If after all bonues are cut to 0, then and only then should employee’s salaries be affected. I think you’d quickly see, how profitable HP really is, if everyone was paid a fair salary. Institute a 10X pay differential between the median employee’s salary and the CEO and executives and you’d have one happy growing company. Oh .. and no special executive bonuses… Everyone gets the same percentage bonus based upon their base salary. The median guy making 50K get 5K @ 10%, the CEO at 10X, making 500K gets 50K. Its a positive balanced salary scheme. HP would be the shining star of all industries if such dare I say it … Drastic changes were made.

  3. nice information very good man thanks.

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