So, I have heard that several Big law firms are starting to cut associate pay - to - $144,000 instead of $160,000. You won't find any sympathy here, new big law associates! As for the people who are laid off....you should know that there was no reason for them to lay you off. They could have reduced pay for everyone just a little and avoided lay offs.
That is what stinks about the minds of people in charge. It is easier for them to trim their workforce, including new associates and staff members, than it is for them to announce pay cuts. I have a very hard time sympathizing with the big firm business model, but that may be because I am missing something.
Anyone care to explain?
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Companies layoff instead of trim salaries because salary trimming upsets EVERYONE. While layoffs are more difficult for the company (because they are actually LOSING resources), they are making more people happy by laying off rather than cutting salaries.
Your statement that "That is what stinks about the minds of people in charge. It is easier for them to trim their workforce..." is false. It is definitely harder to layoff people because they have to figure out how to get the same work done with less people. They do it because it pisses off less people in the long term.
Two other reasons:
1) Layoffs give companies a chance to trim the low-performing employees (though this isn't always why people get laid off). This is always good.
2) In a market where people follow higher salaries, when you trim salaries, you make yourself more susceptible to losing your best people to other companies since you're not paying them competitive salaries.
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