According to an article in the Star-Telegram, the newspaper is sending 12 percent of its workforce to the unemployment line. The newspaper cited “unprecedented revenue declines due to the economic recession” as the reason for the cuts. Star-Telegram is also cutting wages for the remaining employees by up to 10 percent, freezing pension plans and ceasing employer contributions to 401(k) retirement plans in an effort to reduce expenses by $110 million.
The Star-Telegram has joined other newspapers such as The Chicago Tribune in implementing job losses and cutting salaries in an effort to survive the recession. And the actions of the newspaper industry are not isolated. Many more businesses are expected to implement more job losses and salary cuts across the board as they watch the recession eat away at their revenue.
Many companies simply have too many employees for their current circumstances. As cashflow decreases or ceases altogether many are facing the prospect of bankruptcy even with the cost cutting measures designed to stop the bleeding.
For those who are facing job losses it is best to make a plan for the long-term. Currently those who have suffered a job loss are enduring job searches that last as long as a year. If you lose your job, can you afford to have no income for up to a year? If not, after facing a job loss, schedule an appointment to speak with a bankruptcy attorney to find out how you can use bankruptcy to protect your assets.