More Companies Should Cut Wages, Not Jobs

Some deem sharing the pain preferable to axing workers

(NEWSER) - Employers increasingly are opting to cut salaries rather than staff as they tighten budgets, a plan that helps keep them ready to respond to an economic rebound but could hurt morale, reports the Los Angeles Times. Companies also are looking to trim operating costs by eliminating bonuses, requiring employees to take unpaid leave, and slashing other benefits. More»

Knowing it's coming could help you prepare

(NEWSER) - More than 750,000 American jobs vanished this year, and more cuts are likely amid the current crisis. MarketWatch offers red flags that a pink slip is coming:

• Colleagues get fired: You are not immune, even if your boss says so.
• Training budgets dwindle: They are "not sure if everyone is going to be there," a career manager says.

Former Fed chief takes heat on Capitol Hill

(NEWSER) - Alan Greenspan is taking more heat on Capitol Hill today as a three-day series of hearings begins on the economic meltdown. “What we tried to do was the best we could with the data that we had,” the former Fed chief told the Financial Crisis Inquiry Commission. “Did we make mistakes? Of course we made mistakes." But he defended the central bank's efforts and said it was "quite active in pursuing consumer protections for mortgage borrowers," reports Bloomberg . More»

Some see bottom, others 'fool's gold' in Sacramento real estate

(NEWSER) - In Sacramento, one of the first US cities to see the housing market crumble, there are glimmers of recovery, the New York Times reports. Sales have jumped 45% from last year, and investors and first-time buyers are on the prowl. “It’s fragile, and it could easily be fleeting,” said an analyst. “But history suggests this is how things might look six months before prices bottom out.” More»

(NEWSER) - FedEx net income plunged 75% in the third quarter, the company announced today, a bad sign for economists who consider the shipping giant a bellwether. FedEx also announced plans to cut $1 billion in costs, though it didn’t detail how many job cuts that might entail. The company has already lowered salaries, with CEO Fred Smith taking a 20% pay cut. Shares fell 5.9% in premarket trading, the Wall Street Journal reports. More»