Cygnus Reduces Salaries, Workweek
Pay cuts come as company readies for ownership transition to General Electric.
Following the footsteps of fellow b-to-b publisher Penton Media, Cygnus Business Media is scaling back to a 36-hour workweek for a 16-week period—beginning Monday May 25 and ending Friday September 11—in an effort to reduce expenses. As a result, full-time employee salaries will see a corresponding salary reduction for that period.
Part-time employees’ hours will be "adjusted proportionately,” according to a memo to staffers.
“Like all companies, we have to make difficult decisions that affect our employees,” a spokesperson wrote in an e-mail to FOLIO:. “Instead of a colleague losing his or her job, or furloughing the entire company a week at a time which would put a great hardship on our families because they would lose an entire paycheck, Cygnus is trying to come up with creative ways that lessen the financial blow to a family and at the same time perhaps provide more time for them to spend with their children which is why the summer months have been chosen for the 36-hour work week.”
Last month, Penton reduced its workweek from five days to four—effective the week before Memorial Day through the week before Labor Day—and reduced employees’ pay.
Cygnus employees will have the option to work half days on Fridays or take every other Friday off, the memo said. The shortened work schedule will not impact benefits packages, the company said.
The cutbacks come as the publisher’s senior lender, GE Commercial Finance, is said to be working out the details of a debt-for-equity exchange with its other lenders which would transfer formal equity control of Cygnus from Boston-based ABRY Partners.