Year-end cuts by nearly 40% of multinationals

Source:Global Times Published: 2013-2-8 0:13:00

About 39 percent of multinationals surveyed said they would cut their employees' year-end bonuses, higher than 24 percent for State-owned enterprises and 27 percent for private firms, according to Career International's report.

Among these multinationals, 10 percent said they would cut year-end bonuses by 20 percent this year from a year earlier, the report said.

Compared with domestic firms, multinationals are more vulnerable to the global economic downturn, experts said.

Take Siemens. The company used to reward employees who fulfilled their targets with an annual bonus equivalent to fourth months' salary, but now the bonus has shrunk to two months' salary, the Beijing Morning Post reported on January 28.

Year-end bonuses at HP have also shrunk quite a bit due to the multinational's loss of $12.7 billion in fiscal year 2012. An employee of HP China told the newspaper that most employees are not getting a bonus this year.

But some multinationals are outperforming others in the global recession.

"Last year I got a year-end bonus of four months' salary, and this year the bonus will be raised a little," said an employee at a German auto company.

Global Times



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