Employees turned into contract workers at Tucson PR firm

As the owner of a small PR firm, I found this article very interesting, and slightly disturbing. Thanks to the economy, an Arizona PR firm had to make all of its employees work as freelancers, but the silver lining is that they were allowed to take their computers, desks and chairs so they could set up shop at home. For some reason, that reminds me of the scene in Jerry McGuire where Jerry takes the fish from the fish tank! LOL
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By Brian J. Pedersen
arizona daily star
Tucson, Arizona | Published: 03.18.2009
advertisementLocal public relations firm LP&G Inc., is shifting nearly all of its employees to contract work in an effort to offset a downturn in business.
"We are transforming for the future," owner Leslie Perls said. "You have to adapt or die. We are adapting so we can press forward with more great work."
LP&G offers advertising, marketing, PR and Web design services to local, national and international clients that include University Physicians Healthcare, the Susan G. Komen Foundation and Xood, an energy drink designed by local cardiologists Lou Lancero and Salvatore Tirrito.
LP&G also served as the local media contact during the Tucson Extreme Makeover: Home Edition project in late January and early February.
But with advertising business dropping considerably of late — "advertising is one of the first things to go off a client's expenditures," Perls said — the decision was made to adjust to changes in the area that made up a majority of the company's workload.

"The marketplace has changed exponentially," Perls said. "Our clients need us to be less expensive, more pertinent and more flexible."
Perls said the switch, which begins Thursday, effects 15 of the company's 17 employees. Most will continue to do the same work as they did before, but much of that will be done from home rather than the company's 5,000-square foot office in the Historic Depot at 400 N. Toole Ave.

It is unclear whether the company will move out of that space, she said.
Because the affected employees are essentially being removed from the company’s payroll, Perls said they will be responsible for securing their own benefits. To compensate for that, the contractors will get two weeks’ severance and have been invited to take with them their computers, desks and chairs in order to be able to effectively set up shop at home, Perls said.