Edelman, the American public relations and marketing consultancy firm, has announced job cuts. It will be laying of about seven per cent of its global workforce, which is about 390 people, in a bid to sustain business. The remaining employees will take a pay cut of five to 20 per cent, depending on their pay scale.
The CEO of the global communication firm has stated that the economic effect of the pandemic has forced the Company to resort to furloughs, downsizing, reduction of work weeks and pay cuts. This decision to lay off employees has come after an assurance given by the Company in March that there would be no job cuts.
The Company pointed out that it was able to survive recessions in the past by simply relying on temporary pay cuts. However, this time round, no other measure seems to be helping to restore some amount of stability, except downsizing. This move, according to the organisation, will bring benefits in the long run.
In order to stay afloat, the organisation had to deduct the compensations of the executives on the global operating committee by 15-20 per cent. It has also stopped using the services of freelancers, and for the time being put a hold on internship programmes. It has restricted external hiring, except for a few critical global positions and is also going slow with regard to internal promotions.