Saturday, March 07, 2009

Company Layoff Plans Expected to Decline

WASHINGTON, D.C., February 25, 2009As the recession continues, companies are looking ahead and expecting to experience a long period of economic hardship. A new update to an ongoing series of surveys conducted by Watson Wyatt, a leading global consulting firm, shows that most companies have already made most of their intended sweeping changes. However, many expect to make further cost-cutting changes this year, such as salary and hiring freezes, and reduced 401(k) matching contributions.

“Companies have come to terms with the fact that this recession is going to last and that they can’t slash their way out of it,” said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. “Many companies are putting the drastic cuts behind them and are now focusing on smaller, more sustainable cost-cutting actions.”

According to the survey of 245 large U.S. employers conducted last week, 52% have made layoffs, up from 39% two months ago. However, the number of companies planning layoffs has fallen 10 percentage points from 23% to 13% (see chart above).


HT: Andrew Greene

5 Comments:

At 3/07/2009 2:51 PM, Anonymous Anonymous said...

So that we are clear as to how we got in this mess - watch this

 
At 3/07/2009 4:58 PM, Blogger KauaiMark said...

Of course it's expected to decline. Eventually there isn't anyone left to can!

 
At 3/07/2009 8:03 PM, Blogger Tom said...

As an aside to the layoffs.

Expect the price of goods in retail stores to increase as corporations are preparing for the increase in taxes.

And if that adds to a continued decrease in foot traffic, look for more businesses to close.

 
At 3/08/2009 8:15 PM, Anonymous Anonymous said...

Temporary employment foretells total employment. It is a leading indicator.

Was their an uptick in temporary employment in February? Well, maybe with a magnifying glass.

Hate to rain on Mr. Sunshine's parade.

 
At 3/09/2009 5:14 PM, Anonymous Anonymous said...

"As an aside to the layoffs.

Expect the price of goods in retail stores to increase as corporations are preparing for the increase in taxes.

And if that adds to a continued decrease in foot traffic, look for more businesses to close."

LOL
There is no pricing power in this market unless you want to join the heap of dead companies.

 

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