CEO boasts about record profits, then announces slashing everyone's 401k matches in the same conference call: 'We just had the best year ever thanks to YOU!'

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Ben Weiss • Writer and Editor
Aug 5, 2024 8:00 AM EDT

This conference call sounded like a rollercoaster ride.

It's no secret that company meetings often are filled with motivational speeches from the higher-ups at the company. CEOs are likely to give a positive spin on the state of things in order to maintain momentum and drive among employees. However, most employees can see right through these tactics and can decipher if the health of the company is much more grim than it seems. 

This time, however, the CEO had the audacity to claim that things have never been better for the company, only to pull the rug out from under his employees mere moments later when he announced that their parent company was eradicating their policy of matching everyone's 401k contributions. 

Keep scrolling below to see how the employees reacted to this confusing mix of information. For more stories like this, check out this post about an HOA's abrupt policy shift that had everyone in the neighborhood up in arms. 

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  • 01
    "My company announces record breaking profits and slashes 401K in conference call"
    via Headway
  • 02
    My company announces Record breaking profits and slashes 401k in conference call
    via u/mx023
  • 03
    Today, the company I work for(200 people) - owned by a fortune 200 company- had our fiscal year review today. Our president talked for the first 15 minutes
    via u/mx023
  • 04
    about how last year was the best year in all our 30 years of business - we smashed every projection. We have some of the companies largest projects EVER in the pipeline and We want to hire 30-40 new personnel in the next year.
    via u/mx023
  • 05
    Then he went on to say our parent company - a fortune 200 company in industry is forecasting a slowdown and nervous due to election year
    via u/mx023
  • 06
    So, every employee in their umbrella of companies is no longer getting a 401k match. But not to worry because we just had the best year ever thanks to YOU!!!
    via u/mx023
  • 07
    Is this even legal?? Our company just had the best year ever making hundreds of millions and then slash our 3% match just like this??!
    via u/mx023
  • 08
    Our stock is up 50% the past YTD (up 70$ this year) They also did this and made us take a 7% pay cut during >.. but this isn't even
    via u/mx023
  • 09
    Is anybody else going through anything like this? I mean I've heard of a few places doing layoffs right now but this is the first I've seen anything like this.
    via u/mx023
  • 10
    LifeRound2. 20 hr. ago Almost certainly legal. If you've got a signed contract that may be different. Time to ask for a 10% raise.
    via u/mx023
  • 11
    - mx023 OP. 19 hr. ago I mean, I did sign a job offer. Does that count for anything?
    via u/mx023
  • 12
    LifeRound2 19 hr. ago That depends on what was specified in the offer. Was the 401k match on the offer sheet? Also, I'm NAL. Maybe one will weigh in.
    via u/mx023
  • 13
    mx023 OP. 18 hr. ago My offer letter from 2015 says that I am eligible for 401(k) compensation as of XXXXX A new company owns us now
    via u/mx023
  • 14
    Born-Mycologist-3751. 20 hr. ago The problem with a successful year is you have to top it next year. If you can't do it on the top line, you start trimming expenses. People cost is one of the biggest buckets of expense in most companies so it is an easy target. Of course, it is a penny wise, pound foolish approach since reducing internal investment leads to a downward spiral in the long run.
    via u/mx023
  • 15
    Ceilibeag 19 hr. ago Time to leave. Your employer just showed you how much they value your contributions. Don't allow them to profit from your suffering.
    via u/mx023
  • 16
    mx023 OP. 18 hr. ago Yeah I would say all 200 employees are thinking the same thing
    via u/mx023
  • 17
    Alone-Noise-3454. 18 hr. ago Time to work 3% less hard then
    via u/mx023

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