The Markets February 6, 2009

7-Eleven Latest to Suspend 401(k) Match

Dallas-based 7-Eleven Inc. said it is cutting 200 positions and suspending contributions to employees’ 401(k) accounts to minimize future job losses.
Reported by

The Dallas Morning News reports the 200 jobs being eliminated are in Dallas corporate and other non-store operations throughout the U.S. and Canada, and represent 10% of the company’s non-store workforce. The company said those losing their jobs will be provided severance and outplacement services.

In addition, 7-Eleven management told employees Thursday it is suspending merit pay increases and reducing incentive compensation for most positions.

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7-Eleven joins a growing number of companies announcing match contribution suspensions to reduce costs in the down economy. (see “Eddie Bauer Suspends Match’ and “Another Media Company Takes 401(k) Match Suspension Route’).

The Markets February 6, 2009

Another Media Company Takes 401(k) Match Suspension Route

Las Vegas-based newspaper company Stephens Media LLC has suspended its 40(k) match to save money because of the bad economy.
Reported by

A report on the Arkansas Business.com Web site said President and CEO Sherman R. Frederick made the announcement in a January 31 letter to employees.

Frederick said the suspension of the match of up to 3% was effective immediately and would last for the rest of the year, according to the report. Frederick also announced a wage freeze for all publishers and managers.

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“I take this step reluctantly, but it is necessary in order to help us maintain the financial health of the company,” Frederick said in the employee letter, according to the report.

Frederick added that the company’s newspapers “have been significantly affected” by “an uncertain and challenging time” in the industry.

The company joins a list of media companies that have suspended their 401(k) match, including two this week (see “McClatchy Suspends 401(k) Match’ and “Another Newspaper Announces Match Suspension’).

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