Xerox Announces Match Suspension

March 20, 2009 (PLANSPONSOR.com) - To cope with effects from the economy, Xerox said it is taking steps that will save it as much as $300 million this year, according to MarketWatch.

The steps include a freeze on hiring and salary increases, and suspending matching contributions to its U.S. employees’ 401(k) retirement plans, the news report said. The Norwalk, Connecticut-based company said it is seeking further savings by cutting back on travel, overtime pay, and the use of outside consultants.

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Grappling with what it called an “increasingly more challenging global economic environment,” Xerox warned it expects to post first-quarter earnings of 3 cents to 5 cents a share – down from its previous forecast of 16 cents to 20 cents a share.

The new savings will add to the $250 million in savings Xerox already expects to achieve based on earlier restructuring initiatives, according to the news report.

While Xerox is another in a long line of companies announcing match suspensions to cut costs, studies still show companies choosing this option remain in the minority (see Three-Quarters of Employers Have Not Touched Their 401(k) Match ).

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