Japanese electronics manufacturer Sony has announced that it would freeze the salaries of its employees, as the company is trying to recover from record loss from the company because of the weakening US economy and the growing strength of the Japanese Yen.
According to Reuters, the company pays bonuses on the performance and their role in the company; and not how long that they have worked at the company, which several other Japanese companies do.
While this may be a first for Sony to freeze its employees’ pay, it is understandable as they are continuing to find ways to compensate for its US$2.9 billion operating loss. It has already sacked 16,000 employees and shut down several factories and cutting salaries of its managers.
Hitachi, Toshiba and NEC are also considering plans to freeze its employees salaries.