Friday, January 30, 2009

Layoffs and Pay Cuts Hit Home

This morning there was an email from the big boss announcing a meeting first thing. I knew it was bad news. The big boss never announces meetings. We gathered and braced ourselves for whatever it was. He told us 23 people were laid off today at 2 of our other offices. Business is very bad and they didn't think it would get this bad. Then he said all salaried workers were getting a 10% reduction in pay. Ouch.

This is the first salaried job I have ever had. I don't think I like being salaried very much. At least we should be allowed to leave at noon on Fridays or something. I would like that. But no, we still have to work 40 hours for less pay. With my last raise I had finally reached the $40k mark. Now it is gone in the blink of an eye. $4,000 (10% of $40k) works out to be $200 a month after deductions. Now my mortgage repayment amount is back down to $1,200/m where it was at the beginning of last year. I had optimistically put $100/yr raises in my spreadsheet. I took them out and adjusted my lower monthly payments. It added 2 months on to my plan.

So far this year my mortgage repayment plan has been going one step forward and two steps back. The house restoration a couple of weeks ago added another month on to my mortgage plan. I had one year and 8 months to go. Now I have 1 year and 10 months to go. It isn't supposed to be getting longer!

It is very disheartening to not see progress on my plan. Hopefully, when my long-term renters get settled in March I can start making progress again. That is if I still have a job.

11 comments:

Over the Cubicle Wall said...

That had to have been a scary moment when the meeting was called. I am wishing the best for you and your coworkers.

Daizy said...

Well, at least I thought either we all would get laid off or none of us. They would have told me individually first if it was just me...I hope. That would be bad to do it in front of the group in my opinion. And NO donuts!

Over the Cubicle Wall said...

You are right, layoffs are generally done privately, or all at once. They closed an office that my sister used to work for all at once. They had cops there just in case things got out of hand. She worked for a different office, and got laid off a few months later individually.

Enough of that kind of talk. Hang in there, and enjoy your weekend!

Lizzie said...

Just lucky not to be one of the 23 there Daizy. Reurbishng the Moble Home and getting more tenants in is looking more sensible by the moment.

livingmyrichlife said...

I'm feeling for you. I'm sure things will pick up soon.

Christine said...

I am so sorry to hear that your job got caught up in the economy's downfall.

But, I am happy to hear that you have a solid plan to see you through this dismay. 2 months... no problem!

Daizy said...

Hi Lizzie, I don't know whether to spend money on the mobile home or send it all to the mortgage. I'm afraid to spend any money at all. Maybe I should just hoard it!

livingmyrichlife, I hope so too. There was some talk about the next cuts coming in April if things don't get better. I might not be so lucky next time.

Christine, I just need to keep my job for 1 yr and 10 months! It isn't looking good though.

Anonymous said...

I know it's hard to keep positive with all the doom and gloom atm. We are feeling it here as well and are being warned it is only going to get worse. Keep your chin up as you are still doing the best that you can in your situation - and you can't do much better than that. I finished up last week in my job, but thankfully my DH is the main bread winner and he is winning at the moment:) Will be thinking of you in the hard times. Courtney (Perth Australia)

Middle Way said...

Hang in there! Don't let those thoughts get to you. You can only control what you can.

The Executioner said...

This is exactly why you SHOULD stay focused on your plan. Once the mortgage is paid off, think about how this type of announcement would affect you. Instead of thinking, "Oh no, this means I can't pay as much toward the mortgage", you can think, "Are these jokers worth my time? Maybe I should take some time off until the economy gets better and employers are willing to hire people at fair wages again." It would be your own way of sticking it to The Man.

Daizy said...

Courtney, sorry to hear that your job is over. Are there any jobs at all? It is good to hear that your husband's job is secure.

Middle Way, thanks for the encouragement. So many bad things are looming at once. I'm getting tired of the dodging and weaving...but I'll keep trying.

The Executioner, that is exactly what I would love to do. I have been racking my brains trying to figure out how to pay down the mortgage without getting myself trapped in a corner if I lose my job before I can accomplish it. It's a difficult balance.