Reading Reaction Journal-2

Reference

Reuters (2009, January 30). AT&T Chief Gives up Bonus. Retrieved January 31, 2009, from http://money.cnn.com/2009/01/30/news/companies/att_bonus.reut/index.htm?postversion=2009013017

Summary

This article shows that AT&T will take measures to resolve the economic crisis of the company. At first, according to the article, the Chief Executive Randall Stephenson in AT&T will give up his 2008 bonus payment and will stop to give salaries to managerial employees this year. Next, it states that 4% of the workforce in the largest phone company has been cut in December. Finally, the U.S. President Barack Obama has debated on bonuses that were paid for the Wall Street executives last year. To conclude, many companies try to find ways to fight against the economic crisis.

Reaction

During these years, the U.S. has a big problem in its economy. So, a lot of companies try to find appropriate ways to resolve their company crisis. From this article, I know some companies want to figure out the economic crisis by cutting the company’s jobs or reducing salaries of their employees’. I think the latter one is a right way to resolve the economic crisis. Especially, it is a good way for AT&T to carry out this decision, from the managerial group at first, because the company can get a large amount of money at once from the high salary managers without interest payments to solve the company’s financial issue. In addition, if the company doesn't distribute salaries to common employees, the employees will work with negativity and even go out on strike, because they have much less salary than the managers’ to support their families. However, this is just a temporary way to relieve the company’s financial problem. If managers don’t get salary for a long time, they also have a financial problem for their families. And also they work with more and more negativity. To sum up, the company needs to seek right ways to deal with their difficulties.