Categories: OLD Media Moves

Forbes begins pay cuts, week-long furloughs, stops 401(k) contributions

Peter Kafka of All Things Digital has a memo from Forbes CEO Steve Forbes in which he announced a 10 percent pay cut for those at the business magazine making more than $100,000 and a week-long furlough.

In the memo, Forbes states, “A number of our colleagues were laid off over the last two days across all areas of the business. This is due to the unprecedented economic environment we find ourselves in today and the need for ongoing reorganization of the company in response to the enormous technological changes affecting media.

“Other measures we are taking include suspending the 401K matching contribution. There will be salary reductions for anyone making over $100,000, amounting to 10% of the increment over $100,000, starting with the April 1 pay period.

“Everyone will take a week long furlough with no pay. You should talk to your manager about scheduling this furlough. HR will be sending you further information with regard to this furlough in a separate communication. This is not part of the vacation time you have accrued from service at the company.

“These are serious and unfortunate steps, but we believe they are necessary and sadly unavoidable.”