Franklin Resources of San Mateo, Calif. will cut the salaries of its employees who earn more than $200,000 a year by 10% and will cut the salaries of employees who earn less than $200,000 by 5%, according to a report appearing in todays Wall Street Journal.
The cuts were first reported by company officials during a conference call with investors last week. The cuts will be reviewed in six months, according to the Journal report.
The cuts combined with a hiring slow down and a reduction in the amount of bonuses the firm will payout to its employees is expected to save approximately $50 million in benefit costs and compensation, according to the story.
Franklins austerity plan follows a similar move made by Fidelity in May when it announced it would cap the salaries of those employees who earned more than $75,000.