To cut or not to cut, that is the question

What have FedEx, Hewlett-Packard, Advanced Micro Devices and The New York Times got in common?

Richard Dolan, Head of Economics and Business Studies at The Portsmouth Grammar School, sheds light on the answer…

An article by Jena McGregor in the current edition of Business Week outlines that each of these firms have decided to cut salaries instead of cutting jobs. This has always been a contentious issue for firms and they have generally avoided touching salaries. However, the current economic climate and financial crisis (!) have meant that firms have to take action. This story will complement the teaching and consolidation of motivation (Unit 2.5), change management (Unit 1.8), external influences (Unit 1.5 and business strategy (Unit 6). An excellent resource to use to start a debate…

The link to the article is here: Cutting Salaries Instead of Jobs

Another article that looks at the economic downturn and effects of pay cuts on different groups of people can be found here: Living with Less