Arrow Electronics Cuts Pay to Avoid Layoffs

Arrow Electronics, a Fortune 500 company founded in 1935 in New York City, has started a plan that will cut employee’s pay in an effort to avoid layoffs. The plan will call for mandatory time-off in which employees will not be paid.

Arrow Electronics (Image: Flickr)

A company that deals in computer and electronic products, Arrow Electronics is yet another company adversely affected by the global financial downturn. It earlier unveiled a report that showed that the company’s net income fell more than 30% in the final quarter of 2008.

Paul Reilly, the CFO of Arrow Electronics, said that the company’s plan of mandatory time-off will affect approximately 60% of their North American employees. In total, the company has around 6,000 employees in North America.

Currently based in Melville, New York, Arrow Electronics is regarded as one of the biggest businesses on Long Island. In 2007, the company had a net income of more than $400 million. Over the last year, Arrow Electronics has seen shrinking income that some experts believe may ultimately lead to layoffs.

Source: Wire Reports