Corporate Cost-Cutting Strategies

(Published May 4, 2009)

 

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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%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Only 2% of companies used permanent layoffs as their sole cost-cutting initiative.  The 56% that made permanent layoffs utilized an average of five additional cost-cutting initiatives.

Source: Challenger, Gray & Christmas, Inc. ©

 

Related Topic(s): Termination/Reductions-In-Force, Payroll Management/Bonuses