As job losses mount nationwide, many employees who escaped the job loss axe are finding their benefits reduced or eliminated. According to an article in the Dallas Morning News, Fossil Inc. who reported a 13 percent decline in their 4th quarter earnings and project further losses for 2009 announced that they are implementing job losses that will represent 9 percent of their non-retail payroll. The job losses will save Fossil Inc. an estimated $16 million but employees won’t be so lucky. Fossil is also slashing benefits and reducing salaries for all executive officers and senior vice presidents throughout the company.
With both benefits reductions and job losses, Fossil joins the ranks of many companies who are opting to reduce benefits and salaries to employees even while implementing job losses. But the actions come at a heavy price for employees. With the economy shedding jobs and reduced hiring, employees who lose benefits or experience reduced salaries often don’t have a choice but to remain with the company. But the amount of debt employees owe and their monthly expenses remain the same, driving many of these employees to financial ruin. As businesses receive bail out loans and other forms of aid, something needs to be in place that can help employees who have suffered reduced salaries/benefits because of employer cutbacks and are unable to meet their expenses such as mortgage and healthcare.