Salary Cut Or LayOff - Choose One

Imagine yourself as an employee of a company that is looking at various options to cut the operating costs. Let's assume that the company has about 20,000 employees on its roll.

The management decides to give its employees a choice: -

1. Every employee takes a cut in his/her salary: 30% flat.
2. Layoff 10% of the employees.

A mailer is circulated and employees are asked to vote. Which option would you choose? Why?

Any other day I would have chosen a lay-off. But given the current economic situation, I think salary cut is a better option. After all, there are no jobs available else where. Where will the employees go?

But I think 30% is a bit too much. I know companies here who have announced salary cuts of about 7-10%

If I will be given a voting option, no doubt I will go for option 1 whether I am in layoff category or not. No use of getting salary after making so many people jobless(including needy also).

If I will be asked for better cost cutting option, I will say them to do layoffs for ONLY those employees who are disturbances for other employees and really can't do any work.Then depending on their percentage, reduce the percentage cut for rest of employees. 😀

Due to the global meltdown, there aren't much oppurtunities left for one if we go for lay-off. So its better to earn some experience and a little money rather than to sit idle and do nothing.


So, my vote: option 1!

I'd vote for #1 and immediately secure other employment as 30% is way too much and not able to maintain standard of living.