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The Markets March 2, 2009
Eaton Corp. Joins List of Firms Cutting Match
Power management company Eaton Corp. is implementing cost-saving measures companywide that include suspending matching contributions to employees’ 401(k) accounts.
Reported by Rebecca Moore
The Bradenton Herald in Florida reported that the match will be suspended as of April 1.
In addition, employees were notified they will be required to take a week off without pay before the end of March, a company spokesperson told the Herald.
“This was a global announcement to reduce cost because we found that our end markets have continued to weaken, and they did so further than we expected,” spokeswoman Kelly Jasko told the newspaper. “We feel these actions were necessary to operate efficiently under the current economic conditions.”
While still a minority, the list of firms suspending match contributions is getting longer. The decision has been made by big names such as Sears and Motorola, and has been more prevalent in certain industries than others, such as the media and resort industries. The past week saw a few other announcements (see “U.S. Steel Announces Match Suspension,” “J. Crew Cost-Cutting Clips 401(k) Match,’ “Regions Financial Trades match for Jobs’).