Ahead, the Summer of the Furlough

Employees should go pursue 'personal projects,' bosses say

(NEWSER) - Spain's second-largest bank is taking the creative route to cost-cutting—offering its workers 5 years' paid vacation. Staff at BBVA who want to take time off to focus on "personal or professional projects" can receive 30% salary plus benefits, in addition to a guaranteed job when they return. The bank's HR chief tried to put a brave face on the situation: "We’re looking at offering alternatives to people," he told the Financial Times. More»

(NEWSER) - Companies looking to cut labor costs are increasingly turning to salary reductions rather than further layoffs in an attempt to save employee morale, the Chicago Tribune reports. One extreme case is Acco Brands in Illinois, which imposed a six-week, 47% reduction for all workers instead of downsizing. "It's an alternative to permanent reductions in force," an Acco spokesman says. More»

Moves were expected amidst flat growth

(NEWSER) - Yahoo is slashing 2,000 jobs, or about 14% of its workforce, the company announced today, in a long-expected cost-cutting move. The cuts will hit every department in the company, and sources tell the Wall Street Journal that yet more cost reduction measures are in the works, as Yahoo continues to wrestle with flat revenue growth and declining traffic. More»

Could devastate a still-ailing economy, writes Catherine Rampell

(NEWSER) - Economists say we could be headed for a second recession—and if they’re right, it’s poised to be even more devastating than the first, writes Catherine Rampell in the New York Times . That’s because the starting point for the second dip would be our current weak economy, and this time, policymakers have little room to fix things. Consumers don't have much fat to cut, either—they did that already—meaning families would have to "cut from the bone." More»

Watchers see ploy to hold on to middle class post-recession

(NEWSER) - Wal-Mart will discount around 10,000 items in the face of dipping sales, even as other retailers report increases in business. The move could be a ploy to hang on to middle-class shoppers, who flocked to the big-box behemoth in the depths of the recession but have been upgrading as the economic outlook brightens, analysts tell the Wall Street Journal . Not so, says Wal-Mart. More»