Cisco to Shift Some Pay From Bonuses to Salaries Amid Inflation Crunch
The technology giant responds to employee requests for more ‘cash in hand’ as higher prices for gas, food and rent squeeze workers’ wallets
Photographer: Angel Garcia/Bloomberg
Cisco Systems Inc. is shifting a slice of its workers’ pay out of bonuses and into their base salary, in response to concerns about soaring inflation.
The biggest maker of computer networking equipment will rejigger compensation packages at the start of its new fiscal year in August, according to Chief People, Policy and Purpose Officer Fran Katsoudas. The decision came after the company surveyed employees to find out what mattered most to them regarding their paychecks. The company is also experimenting with a four-day workweek and aims to reduce its real estate footprint by as much as 30% by shutting some older offices and creating new “collaboration hubs” in New York, Atlanta and other cities.
“We asked them what compensation levers they appreciate more,” Katsoudas said in an interview. “With inflation going on around the world, they want cash in hand. So we’re shifting a few of our programs to really drive more of that cash to employees.”