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