LINCOLNSHIRE, Ill. (AP) -- An Illinois-based office products maker will reduce salaries of 2,000 U.S.-based employees by about 47 percent for six weeks.
After that employees at Lincolnshire, Ill.-based Acco Brands Corp. will take a 20 percent pay cut through June 30.
Company spokesman Rich Nelson says the reductions are an alternative to cutting jobs.
Employees were informed Monday.
In the pay period starting Feb. 23, the company will reduce base pay by 20 percent and deduct the equivalent of 10 days pay. Nelson says the overall effect for the six weeks equals about a 47 percent pay reduction.
He says the company is setting up an emergency assistance fund for employees.
Nelson says the cuts are a trickle-down effect of slumping sales at some of Acco's largest customers including Office Depot.