Pay Cut Watch: Did Andersen Lay the Smack Down On Its Employees?

Arthur Andersen & Co.

[Updated with additional information.]

According to a post on Reddit on Tuesday, Andersen is another firm that seems to be squeezing its employees to work the same amount (or maybe more) for less money during the COVID-19 crisis … and even after the virus is defeated:

Cutting pay ranging from 5-14% from anyone getting paid less than 100,000 to 40-50% of anyone getting paid more than 700,000. This will be effective on the next pay period. No reversals planned as of now, including after the COVID situation is resolved.

There is no headcount reductions/layoffs, but they will be laying off based off “performance.” Take it as you will.

 

So this morning we got a tip confirming the pay cuts at Andersen, and we were told the reaction among staff has been mostly negative.

Our source said:

Half of the announcement was [CEO Mark] Vorsatz talking about how continued international expansion isn’t costing us anything, while handing down a pay cut. He mentioned how he was no longer taking trips to Africa like it was supposed to be a relatable sacrifice.

Our source also confirmed that an email sent to staff on March 23 had indicated that no wage or job cuts were coming.

This person also gave us a little more insight into the pay cuts:

Pay cuts for those making up to 200k ranged from 15-19%. They broke the 100k-200k range up into brackets but I didn’t write down all the rates. I also didn’t hear anything about performance based cuts. I think the opposite was said. If there are cuts they will likely be across the board regardless of rank/performance.

If anyone else who works at the House of Vorsatz has anything more to add, email or text us using the contact info below and let us know what you think about the pay cuts.

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

Keeping Cash Flowing In Turbulent Times

“Cash flow is top-of-mind for most clients,” reads an April 3, 2020 article in the Journal of Accountancy about how CPAs are supporting business owners through the COVID-19 crisis. Cash flow has always been an issue for business owners, and CPAs are always their trusted advisors, but if the coronavirus pandemic has taught us anything […]

Hiring Tracker: These Accounting Jobs Need to Be Filled Right Damn Now

[Updated on May 28 with a job opening from Aprio.]  Welcome to Going Concern’s Hiring Tracker, which we hope becomes a resource for accounting professionals who recently lost their jobs during the COVID-19 crisis. We’re asking public accounting firms, companies with openings in their accounting/finance departments, and even nonprofits that need to hire some accounting […]