Lincoln Electric Announces Cutbacks in Cleveland

Monday, February 2, 2009
Topics: Economy
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In another sign of tough economic times, Lincoln Electric yesterday announced it's making cuts at its Cleveland-based operations as part of a broad strategy to save money. ideastream®'s Bill Rice reports.

In a press release, Lincoln Electric President and CEO John Stropki cites “the severity of global conditions” as the reason for the reductions. 

The company says it will reduce work hours and shed an undetermined number of employees… to achieve the equivalent of a 10 percent workforce reduction. 

Most full time employees - about 2900 - are being offered a voluntary separation program that would give them a week’s pay for each year worked, and pay health benefits through the end of 2009. 

Beyond that, Lincoln Electric is cutting executive management base salaries, freezing merit increases, and eliminating matching contributions to 401K plans.  Its goal is to reduce annual compensation by 20 to 45 percent.