Big Firms Deepen Job, Wage Cuts

One more shibboleth of conventional economics, that of the "stickiness of wages downwards," increasingly challenged by the terrible reality of the crisis. The article is subscriber-only accessible, but this excerpt gives a reasonable indication of what's there. From The

Wall Street Journal:

Big Firms Deepen Job, Wage Cuts



Strapped U.S. companies, while continuing to slash their work forces, are deploying a once-rare tool to trim labor costs -- pay cuts.

On Friday, microchip maker Advanced Micro Devices Inc. in Sunnyvale, Calif., said it would temporarily cut pay between 5% and 20% for workers and executives. The chip maker also said it would eliminate 1,100 positions.

That news was part of yet another round of large job cuts by big-name businesses.

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