My small company is currently going through a rough financial patch. I work in purchasing so I've been aware of it for a while but I'm not high up enough to have been privy to the extent of it.
3 weeks ago I was advised to cut down spending to the minimum required emergency purchases only. This week I was told no more spending unless approved by the CEO…
Apparently we've secured funding/investments but the process will take a few months before it hits our bank accounts. In the meantime, we as a company, have next to no cash flow.
Their solution? Hiring freeze, no spending.. the obvious.
The big one: ask employees to take a reduced work week on a voluntary basis. Example, go from 5 to 3 or 4 days and get paid for only the days you work. Most of us cannot afford it, I pretty much break even at the end of the month already, no way I can take 20% pay cut. Also, why? You ran your business poorly, I'm not going to suffer for that.
This is in an attempt to avoid layoffs. At the company wide meeting somebody asked how many people they need to participate to avoid firings. 100 people (out of 200?!) And only 20 so far have applied.
I'm pretty sure I'll be one of the first to go. No money = no purchasing = I do nothing all day. But that's ok. Already looking for something new and I'll take unemployment if it comes to that.
Last thing, one thing I found really rich. My colleague in sales asked a few weeks ago if she could go part time for the summer and they said no because the work load is too high and they can't manage without her. Changed their tune pretty quick didn't they? Lol