Finance directors have been forced by terrorist attacks on New York to make tough cost-based decisions to help stave off recession
Finance directors this week told how the 11 September attacks in New York and Washington has given businesses the ‘backbone’ to take hard decisions, which otherwise may not have been taken.
Since the disaster, a string of companies has announced drastic actions, including job losses, in a bid to stave off recession.
Robert Dighero, FD at online auction website, QXL, said: ‘September 11 has crystallised and accelerated the thinking of FDs and their need to establish their cost bases. Some are suggesting that the tragic event has given some people the backbone or excuse to carry out drastic action. That’s possible.’
Other financiers believe business was simply not wanting to face up to the prospect of recession until the attacks, which prompted action they should have been carrying out months earlier.
Since 11 September, indebted airline British Airways has announced 7,000 job cuts, and is in talks to embark on a transatlantic alliance with American Airlines.
A spokesperson for the BA finance department said: ‘In certain quarters drastic action was needed and the necessary measures have now been taken. We have taken action to ground 20 aeroplanes and unfortunately have had to carry out job cuts. We are continuing to monitor our position.’