Sony employees got their salaries “frozen”, for a year!?
Global Recession is hitting hard in Japan due to the low demand for Japanese products and other factors that are beyond the control of their government. Jobs cutoffs are some of the measures that many companies are taking to fight the crisis, but others like Sony are taking other options like freezing salaries to their employees, for the whole year!?
NEW YORK, March 18 (Reuters) – Sony Corp (6758.T) has decided to freeze its workers’ salaries for the year starting in April to improve profitability, the financial daily Nikkei said in its Thursday edition.
The paper said workers’ bonuses will also be lowered to four months’ pay from six months, and annual compensation for managers will be dropped 10 to 20 percent through wage cuts and 35 to 40 percent bonus reductions.
“Executives will also be slugged with huge cuts to bonuses and salaries,” Nikkei said.
Due to the global economic downtown and the strength of the yen, Sony is expected to report a group operating loss of 260 billion yen ($2.65 billion) for the year ending March 31, the paper said. ($1=98.1086 yen) (Reporting by Gerald E. McCormick)
Source: Reuters
At least it is just a salary freeze, but can you imagine a situation where people have to work “for free” for a whole year? I just hope We don´t get to that point at this rate but it is a really scary thought.
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A “salary freeze” just means they don’t get a raise, it doesn’t mean they don’t get paid.
yea, what the guy above said.
i think Obama wanted a salary freeze for government workers.
For a moment, that was really an scary thought…Thanks for clearing that up..
Don’t worry, at my job we’re gonna have a salary freeze for at least TWO years.
I remember a couple of years ago when I worked for a company that was near bankruptcy…It was so bad that they paid us for one month and then We never received a salary for two months later and so on…until they fired everyone…this sure bring up memories…
“I just hope We don´t get to that point at this rate”
I hope You do. Well, if this crisis stops USians from going around the world killing people – its for the better, to be sure.
The past tense of freeze is frozen dude.
Froze, I mean, but your sentence requires the use of “frozen”.
Just fixed…Thanks tjhan…
Glad i’m working in the medical field~ Just hope this doesn’t ever happen to me D:
The company I am working for has cut the top executive pay, 401k matching is suspended, health insurance reduction suspended, health screening suspended. Security guard on duty has been reduced and some layoffs. But if you ask me, I would rather take a pay cut than to see a layoff.