Lay off vs Pay cut

[Lanatsa]

The 50% cut would likely be the worst.  As these layoff seem to follow industry trend and even crosses over to dissimilar industries (an excuse to jump on the train), I could see a minimum of 70% of companies asking this of their employees.  Sure you could jump ship but if you don't believe these companies would collude in the even of a 50% salary cut, I got tropical land in Iceland to sell to you.

Its better to have no job rather than making yourself fit out on a job which does pay up 50% cut compared into your previous salary.Its true that goods or needs are appreciating its price as years passing by

which means that cutting your salary on half would really be worsen up the situation for you.Therefore, you would really be finding another job which even though pay isnt really that high but
at least it do compensate your everyday living expenses which is something that we do really look for.

Better to lay off those workers rather than on having or offering 50% pay which is really a nightmare for all.

[1715181211]

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[batang_bitcoin]

Before accepting the pay cut, I'll try to look for more better opportunities so that I wouldn't be stuck to the choices that's given to me by my company.
Having a lot of choices will help me decide to look at what's going to be the fitting position to me and opportunity to accept me. Having a pay cut of half from what you usually accept is disappointing and that for sure will affect the usual lively and productive days rendered on the company. But that's just what I think of but I'm sure that it happens in the real life when you're on that shoe to accept the 50% pay check reduction.

[sulendra12]

It's still lose to lose situation.
- First option is you can't get money anymore until you get new job, seeking out new jobs would be really difficult during recession and without any prior experience in their jobs then it's thinned out the chance of getting a new jobs for some of the new or even experienced workers during that day.
- Pay cut is just depends where you live, if you can live with the pay cut then you can bear with it until the situation is normal or until you get a new job. But with same working conditions and same amount of tasks? Some people would be not interested with that.

Still would prefer to get pay cut instead of lay off especially during recession.

[bittraffic]

If laying off doesn't kill the company, maybe this is the better option. It's not the employees' decision though but if I'm an employee and was asked the same question I guess sacrificing employees may just save the company and some employees than cutting off to 50%. They would however have to do some background checks on employees whether which has a high chance of finding jobs and are still fit to work hard labor.

I doubt there are employees who will keep the job when there are tons of jobs to fill.  Those employees have bills to pay.

[Pamadar]

It's still lose to lose situation.
- First option is you can't get money anymore until you get new job, seeking out new jobs would be really difficult during recession and without any prior experience in their jobs then it's thinned out the chance of getting a new jobs for some of the new or even experienced workers during that day.
- Pay cut is just depends where you live, if you can live with the pay cut then you can bear with it until the situation is normal or until you get a new job. But with same working conditions and same amount of tasks? Some people would be not interested with that.

Still would prefer to get pay cut instead of lay off especially during recession.

Exactly, it's still good to have some than nothing at all while finding a new job. You need to continue exploring your opportunities and not to allow yourself being lock with companies who also struggle.

If you can switch career or if you can do an extra job while in the cut-off period, it's all
on you if how you take the challenges, always have a positive overview to continue moving forward.

[Lubang Bawah]

I have experienced this, receiving a salary with a deduction or stopped and got severance pay of around 4x salaries, and I chose the second option that stop and get a 4x salary, and happy it turned out not long after stopping I got a new job that gave a higher salary. Maybe not much can be lucky like me, but with positive thinking then all problems can be solved.

[Kadal Ijo]

Before accepting the pay cut, I'll try to look for more better opportunities so that I wouldn't be stuck to the choices that's given to me by my company.
Having a lot of choices will help me decide to look at what's going to be the fitting position to me and opportunity to accept me. Having a pay cut of half from what you usually accept is disappointing and that for sure will affect the usual lively and productive days rendered on the company. But that's just what I think of but I'm sure that it happens in the real life when you're on that shoe to accept the 50% pay check reduction.

When the company gets into trouble, of course, it is a hard thing to give options that feel detrimental to employees, especially if the employee has worked for a long time and is loyal, but we as professionals must think positively and don't feel that this is the only company where we live, there are still many opportunities which is good and promising so that taking the second option in my opinion is more respectable.

[aoluain]

It's still lose to lose situation.
- First option is you can't get money anymore until you get new job, seeking out new jobs would be really difficult during recession and without any prior experience in their jobs then it's thinned out the chance of getting a new jobs for some of the new or even experienced workers during that day.
- Pay cut is just depends where you live, if you can live with the pay cut then you can bear with it until the situation is normal or until you get a new job. But with same working conditions and same amount of tasks? Some people would be not interested with that.

Still would prefer to get pay cut instead of lay off especially during recession.

Generally speaking this would be the case. Being made redundant in these times would
not be ideal as it would be hard to find a job, likewise taking a pay cut would not be ideal
either, that would render the person financially unstable.

In the case of being made redundant - there are some people who would be able to benefit
from a redundancy payoff, if the person could clear existing debts it might be beneficial,
or maybe the person took a complete change in their living and "downsized" their life, made
it simpler and minimise the exposure to this financial system of boom and bust.

I would opt for Redundancy over pay cut because I would try the above!

[Maidak]

I have experienced this, receiving a salary with a deduction or stopped and got severance pay of around 4x salaries, and I chose the second option that stop and get a 4x salary, and happy it turned out not long after stopping I got a new job that gave a higher salary. Maybe not much can be lucky like me, but with positive thinking then all problems can be solved.

That's the case we have a stable economy and finding a job won't become too difficult. But with the current economic crisis, companies constantly laying off or cutting staff is a different story. With the current situation I think people will choose to stay and accept the pay cut because finding a new job is now almost impossible. I don't know what your area is like? but in my area, it is almost impossible to find new jobs, if any are just very hard jobs and few people can do them.

[Ahli38]

before making a choice, of course we need to do a review of our economic conditions and those around us. like, if we have enough savings and it will be enough to support our daily life for a few months or even years while we are looking for a new job, then choosing to quit and be given severance pay will be an option for me. because if we keep working the same working hours but with a 50% pay cut. then it is not certain that our needs will be met with the reduced salary. but if we see that we will have quite a hard time finding a job after leaving a long job. then of course continuing to survive will make sense even if you are forced to give up being paid 50% less than usual. and be more frugal in extreme. because the cuts are bound to have a big impact on our economy. even we need to revise our financial planning.

[molsewid]

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?

If a company will decrease employee's salary or rate it just became an excuse for the employee to quit his job. Imagine the workload of these people, working in that  industry is very hard, expectations are higher than other companies since they are the top brands in the market, so expect that people in that company has a good credentials and background as well, if you know to yourself that you have the skill and experience will you still accept the half payment? or should you hop in another company for better rate? my opinion is, getting laid will be very painful add the fact that they are expecting to end this year with a job but they end up jobless now, but the thing is with these big names they can get a new one in just couple of days or weeks but it all depends in their experience.

[Bitstar_coin]

During the period of covid-19 when the economic was at it's worst and majority of staffs in most organisations where working from home including the company where am currently working, the management made the decision of a paycut of all staffs salaries by 10% to 15% for mostly the high rank staffs.

According to them, it is a way of ensuring the continous operation of the company and at the same time maintain the ability to pay salaries to staffs. It wasn't pleasant but staffs understood it. Instead of being laid off, getting a payout is a better option. The paycut only lasted for few months before normal salary payments resumes.

[_BlackStar]

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?

A 50% pay cut is too big to consider, but offset by reduced workload and hours it could still be considered. I can still work if this salary deduction agreement is temporary and will be evaluated within a year. But if there's no agreement, then I have no reason to stay.

But then again, 50% is too much to be accepted by any employee in a company. 20% - 30% will be reasonable once they give reasons why this is done to their employees.

[Theones]

During the period of covid-19 when the economic was at it's worst and majority of staffs in most organisations where working from home including the company where am currently working, the management made the decision of a paycut of all staffs salaries by 10% to 15% for mostly the high rank staffs.

According to them, it is a way of ensuring the continous operation of the company and at the same time maintain the ability to pay salaries to staffs. It wasn't pleasant but staffs understood it. Instead of being laid off, getting a payout is a better option. The paycut only lasted for few months before normal salary payments resumes.

during that time people realized that job is temporary and they can be thrown out of the office in no time
the COVID did a hardore reset to the world

[sovie]

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?

A 50% pay cut is too big to consider, but offset by reduced workload and hours it could still be considered. I can still work if this salary deduction agreement is temporary and will be evaluated within a year. But if there's no agreement, then I have no reason to stay.

But then again, 50% is too much to be accepted by any employee in a company. 20% - 30% will be reasonable once they give reasons why this is done to their employees.

the is what is happening in twitter - people are resigning.
There are staff issues and there are management issues as well. So we cannot compare both. And the debate is long and strong

[Jemzx00]

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?

A 50% pay cut is too big to consider, but offset by reduced workload and hours it could still be considered. I can still work if this salary deduction agreement is temporary and will be evaluated within a year. But if there's no agreement, then I have no reason to stay.

But then again, 50% is too much to be accepted by any employee in a company. 20% - 30% will be reasonable once they give reasons why this is done to their employees.

It would be better to evaluate whether the amount of pay cut sill be rational to the work load being done on the company. If you will still retain the workload you've had and have a pay cut mainly because of how the company is going, then it would be better to apply elsewhere.

They should be reasonable for the amount they'll be cutting off their employees salary which isn't always the case, that's why laying off is done.

[STT]

Take the pay cut and start looking for alternatives, your boss might be right and the labor market is dead so wait it out on pay is best.     I think the cut is most sensible but during inflation everyone is taking a cut whether they like it or not.  Its why large government with deficit spending and unserviceable debt loads are so dangerous to the entire country, it will undermine the economy and make the currency unstable.

[Vaskiy]

Take the pay cut and start looking for alternatives, your boss might be right and the labor market is dead so wait it out on pay is best.     I think the cut is most sensible but during inflation everyone is taking a cut whether they like it or not.  Its why large government with deficit spending and unserviceable debt loads are so dangerous to the entire country, it will undermine the economy and make the currency unstable.

Taking the pay cut is good considering the market. The corporate networks too shouldn't have made firing of staff. Saw a post in which an Indian have turned to be citizen of America, but he's been fired and now he doesn't know what to do as the job market doesn't have good set of jobs. He had two kids and all of the sudden a big income getting stopped could mostly affect the immigrant workers.

[Ahli38]

Take the pay cut and start looking for alternatives, your boss might be right and the labor market is dead so wait it out on pay is best.     I think the cut is most sensible but during inflation everyone is taking a cut whether they like it or not.  Its why large government with deficit spending and unserviceable debt loads are so dangerous to the entire country, it will undermine the economy and make the currency unstable.

yeah I think it's pretty wise. Still choose to work even though the salary is reduced. and while working we can first look for good opportunities to replace the current job. or you can also look for a side job to supplement your income from outside. because the salary cut of course also has a big impact on our economy. because even without deductions from salary, many people often have difficulty making ends meet until the next payday. because inflation makes the price of goods rise and so does our cost of living. then getting a salary cut when inflation takes place will definitely make things more difficult. so looking for a side income might be a solution.

[Oasisman]

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?

Man, 50% pay cut is like doing a charity works TBH. Well, that depends on your position and salary bracket, but most people who will be chosen for this kind of situation are those at the rank and file. So, that remaining salary you'll make is not gonna be enough to sustain your family needs.
I'd rather choose to be laid off, but will humbly ask my employer to keep me for at least a month while I am working to find another employer. My nephew once faced with this kind of situation and he did what I suggested above to negotiate to his boss. Fortunately, everything works perfectly well and the transition went smoothly.