Interoffice News Release
DATE: June 16, 2012
TO: All Colleagues
FROM: Jack John CEO
SUBJECT: Fiscal Year End Results to be Published & Other Company Developments
Our teams continue to work long steadfast hours to help the company achieve certain mile stones set earlier in the year; I personally want to thank each one of you for standing with us in a very tough economic landscape that continue to post challenges for our company. At close of business today we will publish our financial statements for the fiscal that just ended on May 31, 2012. Our operating profits declined by 25%, the largest drop in the company’s 25-year history. The challenged faced today and for the next year and subsequently are indeed unprecedented but together we will work though difficult cost cutting initiatives that is unavoidable. We regret that the most serious measure is the furlough of all contract employees that will take effect end of today. We wish these non-company employees well and thank each one for their service to our company and their future endeavors. To make sure that we do not need to have more job losses, we are also going to eliminate future tuition reimbursement, car allowances for non-sales employees, curtailed travel for only pre-approved trips, 1% reduction in the company’s 401K match.
Despite all the cost-cutting measures mentioned above, it is still insufficient to bridge the 25% gap but certainly a step in saving as many permanent jobs as we can. We will continue to be in a hiring freeze phase, and any essential jobs that are vacant will be filled first by qualified internal candidates who are most suitable for the position. Within the next two weeks our Human Resources department will be sending out notices with voluntary package that will be given to each employee for self-identification of a generous severance package; those that quality will have 5 days to respond. We will then assess the savings and take the next step if necessary, i.e. the most difficult part of trimming the workforce across the board by no more than 10%. For those that may cease employment with us, the company will offer outplacement services