From our friendly CareerBuilder insider:
People with a base under $40k are getting a 5 percent cut. That is a MAJORITY of the sales force. Some execs are getting 20-25 percent cuts. Probably averages out to a total of 10 percent of overhead in salaries.
The move was described as “genius,” because “most people were just glad to still have a job.” Agreed. The company avoids the PR hit and looks oh-so-benevolent in the process. Considering the declining state of the economy, however, how many more 5 percent cuts will a workforce accept?
Popularity: unranked [?]
March 13th, 2009 at 4:50 pm
in addition to the salary roll-back, they instituted something even more interesting: optional fridays. the details are that the offices are going to be closed on fridays though if you wish to work, you can work from home. if you choose not to work you still get paid. sales goals are not being adjusted. the expectation is that sales reps will continue to hit their goals.
what is more interesting is the news out of jobing this week: layoffs and lots of them. two office closures, countless staff lost in phoenix, l.a., riverside, denver, houston, dallas, ft. worth and south florida. they appear to have exited the career expo business, except in phoenix. though with only 4 shows this year, one wonders how long that will continue. morale is at an all-time low and staff regularly fears for their jobs.
an insider told me “how many times can we hear that we are the team that is going to make this market successful? that we are the team that leadership has chosen to win. how many times can we hear it and believe it? after the first time, i can’t believe it anymore!”
i wonder what kind of booth and party they will have at this year’s shrm conference.
March 13th, 2009 at 5:04 pm
CareerBuilder again? Did Jobing.com buy his silence with a free SHRM booth again this year?
Jobing.com spent the week cutting jobs again and closing more offices. Dallas, Denver, California, South Florida all lost people. Fort Worth was closed and the company is no longer doing Job Fairs when people need them the most. In the last four months they have closed several offices and cut 30-50% of their staff. This time they fired people who had just uprooted their entire lives to move across the country to the home office in Phoenix this past November. So, their reward for moving four months ago was a pink slip. Jobing is spending themselves into obscurity. What a great investment they made in paying to relocate staff four months ago and then firing them. How about paying for people to get their MBA because they are the future leaders of the company and then letting them go. Of course, they have chosen to keep “Executives” who provide no real value to the company such as the CEO’s sister in law and friends. Money well spent. Do we need to mention the record smashing SHRM expenditures’ last year? I guess we do since at least it bought Joel’s silence.
March 13th, 2009 at 8:55 pm
Shit, I wish they would have offered that to those of us they canned in December. I would have gladly taken a 25% paycut to keep my job.
*grumbles*
March 14th, 2009 at 9:37 am
Kudos to CareerBuilder, this is a very smart people and public relations move. Leadership should take the biggest cuts and you always need to have maximum sales reps so the 5% cut versus people cut was a very smart and strategic decision.
I believe, on the sales side, you will see boards cut salaries all together and institute aggressive commission plans if they haven’t already.
It’s time to hunker down and produce!
March 14th, 2009 at 9:36 pm
Your Calling is Calling…5% this months …PIP next month…Work from home permanently!!!
March 16th, 2009 at 10:37 am
Those of us who work at CB are thankful that we still have jobs at a great company, in a time when the normal reaction is to let go more people. Our leaders have taken part of the pay hit themselves; what a move when a profitable company decreases executive pay, and guys like AIG keep raking it in. We’re just as strong over here as we’ve ever been, even if we have to take more pay cuts…this is a time of sacrifice, and we all need to give a little to keep alot.
March 16th, 2009 at 3:21 pm
Rafael? Bueller? Bueller? You don’t post when someone gets a pay cut…only when someone gets canned? Or is Real Whatever not hiring any more?
March 16th, 2009 at 10:51 pm
I used to work at CB…left in the summer of my own accord. WHAT happend? Who tooks pay cuts and by how much? And what’s up with Fridays? OMG
March 17th, 2009 at 10:17 am
Fridays are NOT optional. I’m also going to need you to go ahead and come in on Sunday, too. Thaaaanks.
March 17th, 2009 at 10:39 am
This is still a joke. I was one that was cut back in December. Am I bitter? Sure, maybe a little. But thats only because of what I know. The real questions are why they would create a position(s) with a 300k salary? I know because I’ve seen the numbers. Anyone want names???
kidding.
ok, so maybe I’m kidding. :)
March 17th, 2009 at 1:42 pm
Buying someone’s silence? Seems to be all the rage these days. At this rate Joel will be buying a booth for Jobing.com in New Orleans.
Rumor has it Aaron Matos(CEO)is asking all of the newly laid off employee’s to sign an (Please don’t talk shit about Jobing.com on any blogs or social networking sites because it hurts my feelings) agreement stating that if you except the severance you will be a good little ex-employee and be silent.
2009 SHRM Party Prediction
- Aaron Matos in a dunk tank while former employees take turns. Keep the water running he’ll make a big splash!
March 17th, 2009 at 2:49 pm
how about it joel, can we get an update on what’s happening at jobing like we get about cb or monster? or even jobfox or linkedin, or any of the other players in this space we have read about……
give us the information
March 23rd, 2009 at 1:16 am
Axed, I’m with you, if they had offered pay cuts back in December, perhaps CB would have devised a better exit plan for the people who were laid off. (on a side note, HR that was your time to shine, but instead, you were reduced to being the typical tactical back office group that everyone thought you were…read Jack Welch’s article in Business Week about your role in layoffs, it’s great advice)
For all who are currently working at CB, every manager, every leader, is trained to spin bad news in a positive way. If you are being told that you were CHOSEN to win or to make CB successful (see 1st post by Anonymous), I’m sure some of it is true, but keep an open mind, read between the lines, and most importantly, be prepared (get your resume ready, beef up your linkedin profile, network like crazy). The economy is foretasted to get worse this year, which is bad news for everyone…so if there are fewer jobs available for posting, how is it that CB is expecting you to help make a profit? Your ancillary products are great, but with employers going through budget cuts as well…they will be hard to sell. So, best of luck to you all this coming year. I hope the pay cut is temporary!
August 19th, 2009 at 4:30 am
They do a great spin job. There is no loyalty accept to the founders of the firm and bunch of former RSM McGladrey consultants in key HR positions.
The VP of HR is ruthless. I was in a meeting last Fall with her as we discussed the layoffs and at that time the alternatives of pay cuts etc were floated. But not opted. She vetoed the idea. I run a small department of key folks and said that my employees were loyal to CB and in turn we should show loyalty to them in hard times. Her reply…” If people want loyalty, they can go buy a dog.” True story. I’d lose my job if my ID was known …I know…being a chicken. But knowing how senior management runs…and HR is not alone in this two faced approach…the company lives and breathes IT….that is another story.
That says it all. She pushed the CFO out of the way over a year ago so that she reports to Matt directly.
Everyone should be guarded….be careful what you say in company email, and certain managers should be careful about phone use as well.
I am not some paranoid employee, just one who started 4 years ago and am sad to see what I thought was a true trailblazer, new…dynamic…fall into the same old corp politcal crap I left Accenture to try to get away from.
We all have to pay the rent but I feel like a prisoner….no place to go and having to show up every day trying to keep my people happy as best I can .
The newspapers are bleeding CB dry.