Austin-based tech company pauses 401-K matches, HR head to employees in memo: If our business performance ...

Austin-based technology services company TTEC has temporarily paused 401(k) matching contributions for its US employees as companies across industries look for ways to reduce costs during economic uncertainty. According to a report by HR Brew, TTEC informed employees in an April 30 memo that the company would stop its 3% 401(k) match for nine months. The memo, sent by Chief People Officer Laura Butler, said the company hopes to restart the benefit “if our business performance supports it.” TTEC, which is headquartered in Austin, Texas, has around 16,000 employees in the United States.The report said retirement benefits are often one of the biggest expenses for employers after healthcare. During difficult business periods, some companies choose to reduce retirement contributions instead of cutting jobs.Experts told HR Brew that pauses in 401(k) matching usually increase during economic slowdowns. Similar steps were seen during the 2001 recession, the 2008 financial crisis and the early months of the Covid-19 pandemic. Companies such as Sherwin-Williams and Drexel University also temporarily paused retirement matches in recent years before restoring them later.Under a 401(k) plan, employers often contribute extra money to match a portion of employee retirement savings. According to SHRM data cited in the report, 76% of employers offered a Roth 401(k) or similar retirement plan in 2025, while 74% of those employers also provided matching contributions.Craig Copeland, director of wealth benefits research at the Employee Benefits Research Institute, told HR Brew that companies may reduce retirement benefits to avoid layoffs.“One of the things that employers have gone to instead of laying off people, is cut back on its benefits,” he said.Experts also noted that companies sometimes reduce retirement costs gradually by changing vesting schedules or reducing how often contributions are made before fully pausing matches.The report said many companies eventually restore their retirement matches, though not always at the same level as before. Experts advised workers to continue contributing to their retirement accounts even if employer matching is paused temporarily. Reduced contributions from employers can still affect long-term retirement savings if employees stop investing altogether.