Pay Cuts vs Layoffs

Discussions center on executives and employees taking pay cuts as an alternative to layoffs, debating their fairness, effectiveness in cost-saving, and impacts on retention versus severance costs.

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Keywords

CFO VP OP COLA TV CEO cut pay cut pay salaries cuts employees expenses compensation company layoffs

Sample Comments

fastball Feb 20, 2023 View on HN

Why should they take a pay cut?

rasz Dec 29, 2019 View on HN

Dont forget manager bonuses for cutting x jobs.

M3L0NM4N Aug 26, 2023 View on HN

More than having their salary cut by 10%?

changoplatanero Jan 27, 2023 View on HN

It's not like him halving his compensation makes any material difference in the ability of the company to avoid layoffs.

gaanbal Sep 7, 2025 View on HN

when you're making 6 million a year, a 250k cut is inconsequentialmy guess is they're doing this to make people feel like they're taking accountability

TimH Mar 11, 2022 View on HN

They're effectively giving you a pay-cut.

Ancalagon Feb 23, 2023 View on HN

Makes perfect sense if they’re trying to downsize without paying severance/unemployment.

spicyusername Jul 30, 2025 View on HN

They can take a pay cut Why is it always a race to the bottom...?

quantified Oct 30, 2025 View on HN

Not sure why it's thought of as "backfire"? The companies can't cut pay to existing employees. So this how they will cut compensation expenses.

ashwagary Feb 17, 2022 View on HN

They dont want you to know everybody took a pay cut.