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Corporate Cost-Cutting Strategies

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Companies are employing multiple cost-cutting strategies in order to delay, reduce, or eliminate the need to make permanent job cuts, according to a survey by global outplacement and business coaching firm Challenger, Gray & Christmas (Chicago).  Of the approximately 100 HR executives surveyed nationwide, 92% said their companies have initiated cost-cutting measures.  The average number of cost-cutting actions initiated among companies taking a multi-tiered approach was 5.3.  These are the measures utilized by the most companies, in descending order.  

 

Reduced Travel Expenses 66.7%
Hiring Freeze/Reduction 57.8%
Permanent Layoffs 55.6%
Cancelled Employee Holiday Party 32.0%
Other 31.0%
Reduced Or Eliminated Other Perks 29.0%
Salary Freeze/Reduction 27.2%
Reduced Year-End Bonus 26.7%
Cut Workers' Hours 24.4%
Eliminated Year-End Bonus 22.2%
Temporary Layoffs 15.6%
Cancelled Customer Holiday Party 11.0%
Reduced Or Eliminated Matching Contributions  To Employees' 401(k) Plans 11.0%
Cut Back Tuition Reimbursement 10.8%
Forced Vacation 8.9%
Four-Day Workweeks 7.0%
Instituted Furlough Program 6.7%
Cut Office Space Through Increased Telecommuting    6.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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