Four-day week at troubled tech firm

FOSTER CITY, CA: Wilson McHenry, in a bid to avoid agency-wide

layoffs, has shifted to a four-day work-week and cut employees' salaries

by 20%.



'Our objective was to keep the team together without layoffs, despite

the economic slowdown,' explained CEO Julie McHenry.



Many companies have taken similar labor cost-saving measures, such as

mandating vacation days and instituting pay cuts for reduced work

schedules.



However, this is the first time it has occurred at a tech PR agency, say

industry observers.



McHenry emphasized that the firm had worked out arrangements with

clients to continue receiving account service as needed on Fridays. She

also said that employees would be free to pursue freelance opportunities

on their extra weekday 'as long as the account was not competitive' to

Wilson McHenry clients.



With annual revenues of dollars 9.8 million in 2000 and a growth rate of

nearly 26%, Wilson McHenry is one of Silicon Valley's best-performing

independents. However, like all tech specialists, the agency has

suffered from the decline in IT spending, VC investment in tech

start-ups and reduced marketing budgets.



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