Steelcase Layoff’s Begin

Posted by MCC on February 10th, 2009 at 07:48am

It’s official, the Steelcase layoff’s that many have feared for months have became a reality. Employees who had been notified by letters from the company of the possibility of layoffs will be losing their jobs.

But, layoffs aren’t the only changes the company plans to make, it will also beging reducing pay rates of both employees and executives. And, changes will be made to the companies retirement plan as well. The plan will be modified to suspend the companies matching contributions.

Beginning in March, all of Steelcase North American salaried workers will be hit with a 5 percent pay reduction, executive employees will lose 10 percent of their normal rate of pay and even the companies CEO will be taking home 12 percent less money!

Steelcase had notified 600 workers of the impending work force cut backs, but says that only around half of those will definitely be laid off. However, the remaining workers are still in danger of losing their jobs at a later date.

The majority of the employees effected by the cuts live in the West Michigan area. The company is expecting that these drastic measures will save them from $25 to $30 million pre-tax dollars.

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