Newkirk Products Inc., which produces educational materials for 401(k) programs, has cut 10% of the staff at its Albany, New York headquarters.
According to the Albany Times Union, the company has reduced the pay of its top employees, in addition to the elimination of 30 jobs. The report cites Ray Newkirk, who founded the firm in 1972 with his brother Pete, noting that because fewer companies are hiring, there is a drop in demand for brochures and educational materials for new employees who become eligible for 401(k) plans.
Pay cuts were also given to employees who make more than $50,000, with the highest earnings receiving the largest cuts on a sliding scale, according to the Times Union.
The report notes that Newkirk now employs 270 people at its Albany offices, with 330 employees all told, when offices in Portland, Oregon, Butler, New Jersey (McKay Hochman Co., Inc.), and Minneapolis, Minnesota (MasteryPOINT Financial Technologies) are included.
Newkirk and his brother are majority shareholders of the privately held company and about 30 employees have small stakes in the firm, according to the report.
Employees were told of the job cuts, which were effective immediately, on February 12. The Times Union notes that those who lost their jobs were given severance packages and job placement assistance.