Will Silicon Valley Move to a 4-Day Work Week?

Here’s the latest theory from Trip Chowdhry, the tech analyst at Global Equities Research: Silicon Valley is headed for a four-day work week in 2009.

His notion is that the recent layoff spree in the Valley will slow down; but that companies trying to hold on to their talent while awaiting a recovery will shift to a 4-day work week instead. Save money, but keep your talent. At least that’s the theory.

Chowdhry contends that National Semiconductor (NSM) will adopt a four-day work week for all of 2009, and that Cisco Systems (CSCO) is considering the same idea. He says his contacts believe almost every Silicon Valley company could adopt the idea, including Oracle (ORCL).

He says some startup companies will operate on a 20-hour week, although I am skeptical about that one; the name most people around here use for start-ups run in 20-hours a week is “hobby.”

By moving to a 4-day work week, you not only cut salaries by 20%, he writes, but you reduce electricity usage by 20%. He also says that the 20% salary cuts will mean home prices here will have to come down from “artificially inflated prices.” And he says that a 4-day week will reduce commuting, cutting down driving and providing further downward pressure on local gasoline prices.

Comments

[k45:]

Do they really expect a 4 day WORK week, or just 4 days of pay but keep at the grindstone 5 or 6 days a week? Let's face it, many companies pay for a 40 hour week but expect 50-80 of real work.

2008 Dec 19 10:33 AM

[Richard Col...:]

This is a brilliant idea. Cisco has good management and hopefully a lot of companies will follow.

2008 Dec 19 11:57 AM

[Ricard:]

k45 hit it on the bud. Just like how workers not fired after a merger/downsizing work twice as hard for the same amount of pay, workers paid 20% less will probably end up working 50% harder during the time they are at work.

Jan 07 10:39 PM

[rajeev_bhar...:]

Terrible Idea.This will demoralize even the bright and hardworking.

Jan 20 11:15 PM