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Corporate Cost-Cutting Strategies

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in Office Management

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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{ 1 comment… read it below or add one }

Scott Lepre November 28, 2011 at 10:27 pm

Are these really the best cost cutting strategies you can come up with? These directly affect the employee not the employer. How about going paperless, cutting down on printing, rewarding business units with incentives for cost cutting, increasing IT budgets and spend an initial investment to save money long term, reducing executive packages, salary, travel, expenses, etc. Every company wants to go right after the little guy to save money. They’re no better than American Government, tax the poor and give tax breaks to the rich. The companies you interviewed are disgusting and directly affect unemployment and the state that this country is in. The lower and middle class should be the most important classes in this country but it’s the 1% that get away with everything.

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