A survey of 50 companies in the affluent South East, an area which includes the City of London, found that nine-out-of-ten were reviewing their cost cutting options to enhance their performance over the coming year.
Companies operating in key sectors like finance, telecoms, software, IT engineering, media and manufacturing are most likely to make these cost-saving cuts by downsizing staff numbers and by putting a recruitment freeze on new positions.
Other areas where savings are likely to be made are marketing, office equipment and stationery.
Although IT, internet and the airlines have been the hardest hit, accounting and professional services companies have not been immune. Ernst & Young has cut 200 jobs, Accenture have told 400 graduates to stay at home because of lack of work, while PwC has cancelled contracts with 78 graduates.
And as companies put the freeze on filling posts, the recruitment market is the latest sector to feel the pinch with online job finder Monster.com announcing that it is cutting 10% of its 9000 global staff.
This week reports of downsizing have continued to flood the pages of newspapers and news websites. Some of the world’s top companies that revealed downsizing plans recently including WorldCom (1,000 jobs), Philips (11,000 jobs), Microstrategy (1,475 jobs), 3Com’s (6,000 plus jobs), British Airways (7,000 jobs) and British Midlands (600).
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