Salary Cuts in My Company


Written on 9:10 AM by nitesh

As you are aware, we are currently faced with one of the most challenging global economic conditions that has led to one of the worst recessions in the United States over the last eighty years. All organizations (private, public, government) are taking drastic steps to survive through this period. The downturn has hit hard and its toll has been felt widely. Indian IT companies have been adversely effected in significant manner because of the slowdown in tech spending in the U.S. How long this will last or how deep the impact of the recession will be, is anyone's guess.

AAA has also felt the effects of this economic downturn. In the last quarter our growth has come under pressure as our customers face similar challenges and are aggressively reducing their outsourcing budget.

AAA has already taken steps to cut expenses where ever possible without impacting customer service or quality - be it closing down offices in US as appropriate, reviewing and revising contracts with our suppliers, reducing operational expenses etc. We have also taken steps to increase productivity and efficiency so that the employees remain relevant and current with the role and organizational requirements. We have changed the leadership in US and are rebuilding the sales team.

The most challenging task will be to sustain a meaningful level of operation through the next twelve months. It will call for hard decisions on the part of the management teams. The priority is to operate cost-effectively and conserve cash.

AAA has decided, among other measures, to reduce salaries across the entire company both in the US and India starting from 1st February 2009. These actions are necessary to ensure we meet the costs of the enterprise to sustain functioning of the organization. Each employee will receive an individualized letter with the revised salary details shortly.

I understand that this action calls for a sacrifice from you and I want to take this opportunity to thank each of you for your unique contribution to the Company. We have made it through the dot com bust earlier and I am confident that we will get past this downturn too with flying color with your support. We would like to hear suggestions from you, on additional measures we can implement to ensure most efficient and effective use of our resources while maintaining the highest possible levels of customer service. Please feel free to speak with me, your manager, human resources or any member of the Executive Team.

We will need to innovate, synergize our strengths, and operate most cost effectively in line with current level of market demand. I look forward to your help in building the Company.

AAA Company

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  1. Anonymous |

    AAA start with I and ends with T ...... Am i right ??

  2. Anonymous |

    some suggestions

    A - Remove weight from management, example: Sr. Dir. R*** G***
    B - Reduce onsite travel of higher management
    C - Reduce support staff
    D - Close down the multiple Indian operations

    One Quetions
    Why spent so much on buildings when their is no growth plan in place

  3. nitesh |

    who ever you are

    to counter to your suggestions:

    there was bad times when sales people left , but now to survive and keep the company running and to explode when the conditions are open we need to make a sales team

    reduce onsite travel :
    sorry dude that's not possible in the past managers have gone onsite and brought lots of projects

    i don't have the data about the support staff so i cant comment , rumors come and go that its 50% but i doubt its not that big

    i have no idea about the building i think the construction is not going on now.

    in short everyone feels bad when salary are cuts i thought a lot about how quarterly cuts being implemented .. can it be implemented
    time is troubled so i am with this decision as everyone are

    i am hoping the cut is not large :)
    god help us all

  4. Anonymous |

    1. I was not talking about sales people here. It is more like doing a thorough check on performance at each level and fitment in the future plans. The name mentioned is from delivery...non productive for few years
    2. This is not about travels of managers for business purposes

    I also do hope same for all :)
    Cheers -

  5. nitesh |

    no idea about that but ya i am jealous of the guys from that team as most of them are onsite .. its all luck and timing

    lets see
    even this will pass away -- i hope

    I believe 2009 end the world will be moving up


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