Bad News: Business Cutting Back

According to a study by the Institute for Corporate Productivity, 88 percent of companies that were surveyed plan to implement cost-cutting measures within a year.

When asked about how companies plan to reduce costs, 87 percent said that efficiencies will be improved. Seventy-one percent said they are considering cutting discretionary spending, while 65 percent will seek lower costs from vendors.
The good news is that “just” 33 percent said that staff layoffs are imminent.

The most likely cutback targets are operations, closely followed by administration and using external vendors or outsourcing. Thirty-five percent said they will look to their Human Relations departments for cuts.

“In this uncertain economic environment, it’s clear companies are intent on not being caught flat-footed,” notes Kevin Oakes, CEO of i4cp, “but so far it’s looking more like careful surgery than a bloodbath. Layoffs don’t seem to be the first choice for a lot of companies.” According to a study by the Institute for Corporate Productivity, 88 percent of companies that were surveyed plan to implement cost-cutting measures within a year.

When asked about how companies plan to reduce costs, 87 percent said that efficiencies will be improved. Seventy-one percent said they are considering cutting discretionary spending, while 65 percent will seek lower costs from vendors.
The good news is that “just” 33 percent said that staff layoffs are imminent.

The most likely cutback targets are operations, closely followed by administration and using external vendors or outsourcing. Thirty-five percent said they will look to their Human Relations departments for cuts.

“In this uncertain economic environment, it’s clear companies are intent on not being caught flat-footed,” notes Kevin Oakes, CEO of i4cp, “but so far it’s looking more like careful surgery than a bloodbath. Layoffs don’t seem to be the first choice for a lot of companies.”

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