Sony freezes workers' salaries, others consider following suit

It's already laid off thousands of employees and undertaken a number of other drastic cost-cutting measures, but it looks like Sony isn't quite done with the belt tightening just yet, with the company now announcing that it'll be freezing workers' salaries for the financial year starting next month. As Reuters notes, Sony normally raises employee pay annually based on their role and performance, rather than seniority like many other Japanese companies, and this latest move follows some pay cuts to many of the very same affected workers, who've recently seen their wages drop by 10 to 20%. Not surprisingly, a number of other big Japanese technology companies including Toshiba, NEC and Hitachi are also said to be considering similar moves, but they don't seem to be quite ready to announce anything just yet.

[AVG @ Mar 19th 2009 1:12PM]

Well, they're freezing them, so, better than cutting them out completely.

It's hard to see the bright side but when so many people are being laid off all the time, you kind of have to.

[iGoon#2 @ Mar 19th 2009 1:43PM]

I like this..

Better to freeze everyone of cut salary by 10% that to kick 10% of the people out...

[TravisO @ Mar 19th 2009 6:02PM]

But does this include management and the CxOs too? If so, I can admire the effort, but if the cut employees and still sprinkle the management with jewels, it's disgusting.

[Mike @ Mar 19th 2009 1:19PM]

Wait, so you're saying that companies that are having issues due to the economy are actually freezing salaries to solve problems? Is this to avoid firing more of their valuable employees? I thought a responsible company like Sony should follow other large corporations and give bonuses to their executives instead. That seems like the route that works the best for everyone in the company.

Still can't believe AIG, Freddie Mac, Fannie Mae, Bank of America, Merrill Lynch....I could continue.

[kjb434 @ Mar 19th 2009 1:22PM]

Thank the Stimulus Bill. It authorized that the bonuses are OK! Thank you BHO and the Dem Congress.

[Dude @ Mar 19th 2009 2:00PM]

Don't forget Congress voted itself a pay raise last week. That cost taxpayers $2.5 million.

[bandigolo @ Mar 19th 2009 3:34PM]

Obama's first couple months have been atrocious. I'd expect that from a Republican administration, but this is just downright hypocrisy.

[you @ Mar 19th 2009 1:20PM]

he looks like he just shit his pants.

[Gerard @ Mar 19th 2009 1:25PM]

beat me to the punch

[bureX @ Mar 19th 2009 2:48PM]

For some particular reason, both of you seem well informed about the kinds of facial expressions that grown men make when the process of defecation in one's trousers is imminent... Heh... Doodie...

[absinthe party @ Mar 19th 2009 1:25PM]

Oh, I thought that was general practice right now. You can go ahead and add Philips to that list as well. We all had our salaries frozen as well and I doubt we'll tell anyone.

[absinthe party @ Mar 19th 2009 1:36PM]

Err, not that we're Japanese, as was the point intended I think.

Anybody else check out that picture in the read link? I think Stringer should take a leap and make that the new corporate logo. And yeah, I'm aware that's something that would cost money, which they're hemorraging, but still. Do it.

[Karn Eggie @ Mar 19th 2009 1:31PM]

smart move, i just hope they stay smart and stick with hardware under stringer.

[Mark @ Mar 19th 2009 2:06PM]

I think Stringer is wanting to move to software being Sony's primary market.

[Frankenstein Black @ Mar 19th 2009 1:35PM]

Yep, salaries for management at my job was also frozen. Again better than layoffs. And to think, those vile nocturnal creatures on wall street some of whom are responsible for the current global economic condition are looking for bonuses?

Hey you there, blood suckers, what makes you think you deserve bonuses? Not only did you not turn a profit but you ran your companies into the ground, scurrying to the government for tax payer bailouts. Well guess what, you are on WELFARE!!

You getting bailout based bonuses to buy more BMWs is THE SAME AS a welfare recipient in the PJs going out to buy a Cadillac. The outrage cuts across all party lines. Now give the money back and go FUX-OFF!

[bankman @ Mar 19th 2009 4:09PM]

well, maybe not a bonus, but some people in large banks that are actually MAKING money during the downturn should at least some form of compensation for being overworked even if it's a small percentage bump in salary to at least compensate for inflation and pay for 11 dollar a pack cigarettes.

I think lots of companies are freezing salaries, but if you're making money in this economy and getting penalized for other departments in the bank that made bad decisions, lay those people off and hire cheaper more competent workers that are flooding the marketplace, all while sharing the wealth you've provided your company to sustain the trough in the economy and the people that are carrying it on it's shoulders.

[JimDog @ Mar 19th 2009 3:22PM]

Yep...here too. Everyone's salary at my company (from the CEO on down) is frozen this year. On top of that they've laid off several VPs and contractors.

[rob964 @ Mar 19th 2009 3:38PM]

This recession sucks.

[Ry @ Mar 19th 2009 3:56PM]

yes it does..it still amazes me how many people are not affected at all during these times..

[jmzrbnsn @ Mar 19th 2009 5:03PM]

Well, at our company, as they haven't been giving increases, the only thing they can offer us is a salary decrease.
Of course the CEO is leading from the from the front with a 20% cut to his BASE salary. But if you consider that that is actually less than 1% of his entire package for 2008 and there is no reduction to the incentive bonus package, well it's an insult to the workers.

[Chris Perkins @ Mar 19th 2009 11:43PM]

My company did the same. They froze ours way back in January til at least July, most likely longer.