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Benefits March 20, 2009
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.
Reported by Rebecca Moore
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.
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 ).