HP Office at Cyberjaya
Immediately after reporting missed profit target, HP taken drastic steps to reduce operation expenditure including salary cut for every employees worldwide. In gloomy economy situation like now, this move come with not really surprising.
The CEO take the lead with 20% reduction of base salary, although it is common that CEO in big companies usually rake millions of dollar in base salary and other benefit. This cut doesn’t have much impact on their life style. But not for middle to bottom level employees. Usually they are the most affected, even with the less percentage reduction considering their small base pay and benefit they earned.
- Mark Hurd – 20 percent
- Executive Council members – 15 percent.
- Other executives – 10 percent.
- All other exempt employees – 5 percent.
- Non-exempt employees – 2.5 percent
HP not alone in doing this action. Other MNCs who has facilities in Malaysia such as AMD, Intel, Dell, Avago, ASE has taken steeper steps to steer their company away from bad situation by laying off employees, freezing bonus and increment , temporary shut down and etc.
Welcome to the world where reduced profit could lead to salary cut or laying off. From employee point of view, its hard to understand why such dramatic action needed when they have been working hard to contributing to the company success in the past.
Personally, I feel the blame should goes to the investors who’re hungry for more profit. The principt of being considerate is almost zero to non existant when profit is the top most priority. But that’s how our world is going on, and going to be on the later stage.
