Survey: 90% of companies cutting costs
Nine out of 10 companies have put cost-cutting strategies in place — from hiring freezes to furloughs — in hopes of weathering the recession.
That’s according to a survey released this week by Chicago-based job placement consultancy Challenger Gray & Christmas Inc.
Meanwhile, companies say that because of creative tactics to save money, they have been able to avoid making layoffs.
Cost-cutting measures include cancellations of holiday parties, salary freezes, cuts in workers’ hours, reductions in or the elimination of year-end bonuses and cutbacks in various perks.
The most often-used cost-cutting initiative was reducing travel expenses, cited by 67 percent of survey respondents. It was followed by hiring freezes and reductions, which are used by 58 percent of companies surveyed.
Permanent workforce reductions were made by 56 percent of the companies surveyed. Only 2 percent of companies said permanent layoffs was a sole cost-cutting technique.
Nearly 30 percent of companies surveyed started a salary freeze or reduction because of the downturn.