Lay off vs Pay cut

[Smartprofit]

Companies may choose to layoff its employees for several reasons which include but not limited to cost-cutting, staff reduction, relocation, buyouts, and mergers. When you go the Google and search for layoffs you would find out it almost seems like a conspiracy among big companies to layoff its staff almost simultaneously.

• Meta, laid off 11,000 people
• Twitter, laid off about 3,700 people
• Stripe,  laid off about 1,000 people
• Salesforce, laid off hundreds of its employees last week
• Microsoft, laid off fewer than 1,000 jobs
• Zillow, Snap and Robinhood, laid off 300 of its employees late last month.

A pay cut is a decrease in an employee’s compensation. It could be a reduction in salary, benefits, hours and more — it’s not limited to monetary compensation. It can happen for a variety of reasons. For example, a company might be trying to avoid layoffs and/or save money during a tumultuous period, with the intention of returning salaries to normal once the threat is over.

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

Of course, the option of reducing wages is more preferable.  

By the way, during the Covid-19 coronavirus pandemic, I was faced with a situation where my salary was reduced by 1/3.  This is unpleasant, but not fatal.  

Pay cuts allow you to pay for the most important current expenses and at the same time make the decisions necessary for later life.  

You can try to look for additional sources of income, optimize some of your expenses, or take action to find a new job.

[Zaguru12]

Just like @Dave said it is easy for Tech guys to get new jobs once laid off but those on management, its hard for them to get another so interms of management I would just accept a pay cut but that can also be with some hours shorten, with that I could run an extra work to add to it. But the paycut most be something I have looked into and could well be able to take of the major necessities.

[Pamadar]

Just like @Dave said it is easy for Tech guys to get new jobs once laid off but those on management, its hard for them to get another so interms of management I would just accept a pay cut but that can also be with some hours shorten, with that I could run an extra work to add to it. But the paycut most be something I have looked into and could well be able to take of the major necessities.

Yeah, with extra time that also be cut you can still find extra job to fill your lapses, instead of lay off which is very hard to find
another full-time job with the same position.

You can take your time to find new part time and use that as your opportunity to
adjust once you already get the experienced either you can find another new job
or you can stay the same way as how the setup might be.

[suzanne5223]

We are in cryptocurrency winter and the world economy inflation is also increasing lately. I believe every big company that lay off its employees is definitely because of a pay cut and in other for them to keep up by avoiding the pay cut they release some employees that are not the company's backbone while they keep the staff that works in the most important area.
It is something I have experienced before.

[rat03gopoh]

At least I can have a guaranteed income, I'll probably stick with 50% salary and rearranging household spending plans a little extreme. People are more afraid of getting fired, while out there it's very difficult to find companies that can open vacancies in the midst of an economic crisis.

[cheezcarls]

Companies may choose to layoff its employees for several reasons which include but not limited to cost-cutting, staff reduction, relocation, buyouts, and mergers. When you go the Google and search for layoffs you would find out it almost seems like a conspiracy among big companies to layoff its staff almost simultaneously.

• Meta, laid off 11,000 people
• Twitter, laid off about 3,700 people
• Stripe,  laid off about 1,000 people
• Salesforce, laid off hundreds of its employees last week
• Microsoft, laid off fewer than 1,000 jobs
• Zillow, Snap and Robinhood, laid off 300 of its employees late last month.

A pay cut is a decrease in an employee’s compensation. It could be a reduction in salary, benefits, hours and more — it’s not limited to monetary compensation. It can happen for a variety of reasons. For example, a company might be trying to avoid layoffs and/or save money during a tumultuous period, with the intention of returning salaries to normal once the threat is over.

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

This one reminds me of the company where I used to work for 2 years and 4 months. At first, my salary was only $250 a month but increased to $300/month on a consistent basis. However, due to uncertain market situations, they have decided to cut my salary to just $200 and I’m fine with that as long I got some sustainable income until they’ve decided to lay me off due to the market getting worse.

If I have no other income source, I would take it. But if I have more than one, it would really depend on how much I have earned per month with other projects whether if it’s good for me to let this one go or keep it.

[Marvell1]

Looking at the current economic crisis, no one will want to lose their job because finding a new job at this time is not easy. I will also choose to pay cut, but I hope the company will also reduce our working time. Although it is difficult to find a full-time job that matches my specialty, I think I can find a part-time job to fill that free time.

I've seen a lot of companies lay off employees rather than pay cut, I'm lucky I don't fall into that situation but perhaps if the crisis lasts, it will be difficult to say what. Right now, saving is something I think we should all be doing to get through this, even though you or I haven't lost our jobs or taken a pay cut.

[franky1]

Just like @Dave said it is easy for Tech guys to get new jobs once laid off but those on management

you would be surprised by the opposite

certain towns only have a small amount of tech companies. so the employment pool of "tech" is small

however management is wide. you could be manager of a mcdonalds one year, then a supermarket the next then a accounting company the next.

generalised skills/experience/qualifications like business management open doors more widely than computer science

every business needs a manager. not every business needs a code developer..

when it comes to promotion prospects
lets say you start as a McD's burger flipper and work your way up
going into management opens more doors than training to be the grill repair guy(technical skill qualification)

[DaveF]

Just like @Dave said it is easy for Tech guys to get new jobs once laid off but those on management

you would be surprised by the opposite

certain towns only have a small amount of tech companies. so the employment pool of "tech" is small

however management is wide. you could be manager of a mcdonalds one year, then a supermarket the next then a accounting company the next.

generalised skills/experience/qualifications like business management open doors more widely than computer science

every business needs a manager. not every business needs a code developer..

when it comes to promotion prospects
lets say you start as a McD's burger flipper and work your way up
going into management opens more doors than training to be the grill repair guy(technical skill qualification)

Yes, but most of the places being discussed are in major metropolitan areas where there are a fair amount of other tech businesses or businesses that need tech in general. Being in the middle of nowhere is always going to be an issue for some jobs.

The other side is also, if you are at 50%, what else is out there and what is the pay for it in the 'anyone can work here' job.

If you were making $70,000 a cut to $35,000 puts you at $17.50 an hour. (50 weeks / 40 hours a week) if the local job market is paying $16 an hour for no brain - no stress work it might be worth it to go to $33,000 a year and not have the stress of working at a company that is obviously having money issues.

-Dave

[Findingnemo]

Companies may choose to layoff its employees for several reasons which include but not limited to cost-cutting, staff reduction, relocation, buyouts, and mergers. When you go the Google and search for layoffs you would find out it almost seems like a conspiracy among big companies to layoff its staff almost simultaneously.

• Meta, laid off 11,000 people
• Twitter, laid off about 3,700 people
• Stripe,  laid off about 1,000 people
• Salesforce, laid off hundreds of its employees last week
• Microsoft, laid off fewer than 1,000 jobs
• Zillow, Snap and Robinhood, laid off 300 of its employees late last month.

A pay cut is a decrease in an employee’s compensation. It could be a reduction in salary, benefits, hours and more — it’s not limited to monetary compensation. It can happen for a variety of reasons. For example, a company might be trying to avoid layoffs and/or save money during a tumultuous period, with the intention of returning salaries to normal once the threat is over.

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

Lay offs are more dangerous but honestly people will choose the layoff instead of pay cut in my opinion. And also lay off may benefit the company long term because its just one time work while pay cut may not be that much effective in their efficiency and also companies laid off people recently because they are not really in any loss they just feel that they don't need that much human work force in this era.

[isaac_clarke22]

~

Well if my boss made a discussion with me about that, I would prefer just the pay cut, although if I was earning quite okay with my commissions, I would just go with the lay off and just chill-ax for a little bit. Nothing is stopping you anyway to look for another opportunity while you are working though some companies might restrict you from doing freelancing as per contractual agreement.

A lot of people here in my country are doing the "job hopping/diving" since their first job obviously does not end up being well-paid or they are open to far more opportunity, although at this current economy we have, it is a risky move.

[Cryptomultiplier]

Companies may choose to layoff its employees for several reasons which include but not limited to cost-cutting, staff reduction, relocation, buyouts, and mergers. When you go the Google and search for layoffs you would find out it almost seems like a conspiracy among big companies to layoff its staff almost simultaneously.

• Meta, laid off 11,000 people
• Twitter, laid off about 3,700 people
• Stripe,  laid off about 1,000 people
• Salesforce, laid off hundreds of its employees last week
• Microsoft, laid off fewer than 1,000 jobs
• Zillow, Snap and Robinhood, laid off 300 of its employees late last month.

A pay cut is a decrease in an employee’s compensation. It could be a reduction in salary, benefits, hours and more — it’s not limited to monetary compensation. It can happen for a variety of reasons. For example, a company might be trying to avoid layoffs and/or save money during a tumultuous period, with the intention of returning salaries to normal once the threat is over.

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

As sad as it is to be laid off, what's worse is having to have a 50% cut mostly in a job one probably was thinking of leaving. A threat may make a company decide on what's best for its survival, and so anyone working at a company should at least have a second alternative of income. To be faced with such a delimma in these economic times and with family to carter for and bills to pay is the why an employee should work on ways to source a second or third income stream.
I would prefer a lay off as I believe it will usher in a fresh and even better start.

[YOSHIE]

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

Both of which are actually difficult choices, a 50% salary deduction is clearly not sufficient for the needs of the employee in terms of the economy and financially, there is a but, if the employee has expertise in other fields of course for me it is better to choose to quit, other than that he can try to apply for jobs in other companies or he can open his own business with the expertise he has, maybe that's better, we know how long to work in other people's companies, if the employee is nearing retirement he will automatically stop too.

Conclusion: in the two-choice method, if you have to choose one, of course a good choice is to stop, if they have real expertise, a different story if you don't know anything, I mean no skills, of course for employees like that it's better to work with 50% income than not having anything, the problem lies in the situation and circumstances of the employee.

[dezoel]

I will consider a pay cut if it is worth it mean while i will also be searching for a better offer  but if it doesn't worth it I will leave the job to go look for another job, its not going to be easy to get a job it might just be an opportunity for me go get a Bette job .

In my place my friend works in a Setraco construction company there was a period when the company was short of contracts and couldn't meet up to workers payment what they did was that the unskilled workers that are not really contributing to daily activities were laid off while the other unskilled and skilled workers that their services will still be needed was place under redundancy because the company knows that more contracts will come in future that this workers will be needed. It is unfair to just lay off a worker without compensation.

Pay cut is a reduced in our current pay rates right? So how can it be worth it? I think what you mean there is that you will stay as long as the cut is not too much but for me I think I will have no choice but to retain my job no matter whatever the conditions are although I will follow what you have suggested there which is by looking a backup job in the background.

Once I confirm that I am officially accepted, that's going to be the time I will resign on my previous job. I think no company will lay off a worker without paying them because they already know the consequences of doing it. Instead of saving, they will ended up paying more for the scandal that they have made.

[Cookdata]

A pay cut is a decrease in an employee’s compensation. It could be a reduction in salary, benefits, hours and more — it’s not limited to monetary compensation. It can happen for a variety of reasons. For example, a company might be trying to avoid layoffs and/or save money during a tumultuous period, with the intention of returning salaries to normal once the threat is over.

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

I will receive the 50% pay cut but will resume searching for another job as soon as I reach home that day, I know that quitting the job is one of the best options because if one is to consider inflation, no worker can survive with his 50% of his salary right now, price of everything has increased and even the current jobs pay should be increased but is better you stay and have something coming to pocket while hunting for another job especially if there is no additional working hour attach to the new condition of the pay.

On second thought, don't you think a 50% pay cut is cheating workers, it may be for the benefit of the company but employees have to be considered too, when workers don't get good incentives it doesn't usually encourage workers, it will affect the productivity of the company.

[DrBeer]

Companies may choose to layoff its employees for several reasons which include but not limited to cost-cutting, staff reduction, relocation, buyouts, and mergers. When you go the Google and search for layoffs you would find out it almost seems like a conspiracy among big companies to layoff its staff almost simultaneously.

• Meta, laid off 11,000 people
• Twitter, laid off about 3,700 people
• Stripe,  laid off about 1,000 people
• Salesforce, laid off hundreds of its employees last week
• Microsoft, laid off fewer than 1,000 jobs
• Zillow, Snap and Robinhood, laid off 300 of its employees late last month.

A pay cut is a decrease in an employee’s compensation. It could be a reduction in salary, benefits, hours and more — it’s not limited to monetary compensation. It can happen for a variety of reasons. For example, a company might be trying to avoid layoffs and/or save money during a tumultuous period, with the intention of returning salaries to normal once the threat is over.

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

Decreasing the previously agreed level of income and bonuses is often perceived very negatively. First, there is a breach of contract. Secondly, this is a highly demotivating option, and a person remaining in the company will reduce his efficiency many times more than the reduction in income itself. Thirdly - a person begins to count - once they cut it once, and I accepted - they will cut it a second and third time!
Therefore, the most correct and honest way is to explain the reasons, pay severance pay, in the amount of 3-6 salaries. As a result, the employee understands that the situation is objectively difficult, that the company treated him with respect and care, plus he now has a reserve of time and money to rethink the situation, to find a job, or something no less useful.

[lizarder]

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

There would be many reasons to choose one of the two options you provided?

1. Receive a 50% salary cut.

• For people who don't dare to get out of their comfort zone, they will almost certainly choose a pay cut.

• The difficulty of work also influences people to choose a salary cut.

• There is no target to be achieved, so this zone is considered the most relevant as a life support.

2. Dismissed

• Have skills in self-development and are not limited to the company that pays them.

• Get used to living under pressure so you have a solution when this happens.

• have experience in developing a business or business, so it is not too burdensome when facing these problems.

Therefore, this cannot be concluded as just a few theses in sampling, because people will have their own answers when faced with this problem.

[ethereumhunter]

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

Maybe I'll take a 50% pay cut instead of choosing to be laid off because it's so hard to get a new job right now. Even if there is, this will not be what we imagine, so it's better to take advantage of what is available while looking for other jobs outside our regular jobs. That's better to do because at least we still have a salary every week or month so we can use it to survive while looking for another part-time job. But if you are really uncomfortable with the job, maybe the choice is to quit and look for another job, but you need to think about it before making a decision.

[South Park]

Companies may choose to layoff its employees for several reasons which include but not limited to cost-cutting, staff reduction, relocation, buyouts, and mergers. When you go the Google and search for layoffs you would find out it almost seems like a conspiracy among big companies to layoff its staff almost simultaneously.

• Meta, laid off 11,000 people
• Twitter, laid off about 3,700 people
• Stripe,  laid off about 1,000 people
• Salesforce, laid off hundreds of its employees last week
• Microsoft, laid off fewer than 1,000 jobs
• Zillow, Snap and Robinhood, laid off 300 of its employees late last month.

A pay cut is a decrease in an employee’s compensation. It could be a reduction in salary, benefits, hours and more — it’s not limited to monetary compensation. It can happen for a variety of reasons. For example, a company might be trying to avoid layoffs and/or save money during a tumultuous period, with the intention of returning salaries to normal once the threat is over.

Let's suppose your boss called you into his/her office and explained the company's situation. He/she then gives you the option of getting laid off or taking a 50% pay cut. If you were to choose one of these options, what would it be and why?

There is not really a direct answer to this as there are simply too many factors that are unaccounted, it is very common that when a lot of employees will be fired the rumor starts to circulate way before this happens, in that case I would do everything that I can to try to find another job just in case, so if I was offered a lower salary but I had this other option waiting for me then it is obvious I will never accept it, besides if the company is having problems maybe it is the time to leave as you never know when they may ask you to take even less money again.

[Davidvictorson]

Agreeing to a 50% pay cut is not an option for me. Any employer, who offers such 50% pay cut is simply insulting the employees.
I would most likely quit voluntarily, if the employer offers me a 50% pay cut.

If you work in tech or have a skill that is in high demand, the probability of accepting a 50% pay cut is slim. This is so because the individual would rather take on a remote/ freelancing gig and earn twice as much or even more in a couple of hours than to stay back. On the other hand, in most cases and in this context getting laid off may be a blessing in disguise because it may just be the wake up call the person needed to go after that dream, to start up the company etc.