Group, which surveyed senior finance managers in 140 of the largest
1,000 listed and privately held companies in the UK and Ireland, 90% plan to
make operational cuts in 2009-10 and many admit they will make cuts purely to
demonstrate strength of leadership.
Hay also suggests one-fifth will undertake fundamental company restructuring
to survive the recession, and almost half will reduce headcount by 10%.
Additionally, some companies will cut between 11% and 30% from pay and benefits
as a decline in profits of 4.2% is expected and factored in over the coming
A worrying statistic reveals that 28% of companies plan to slash costs across
the board rather than strategically addressing under-performing units. Hay
predicts many companies will cut the “wrong” costs which could create
“There is a right way and wrong way for companies to take out costs,” says
Hay’s associate director Russell Hobby “Successful companies will focus on
underperforming areas and look to increase productivity throughout.”
Disturbingly, 52% of financial controllers in publicly-listed companies (and
41% in privately-owned businesses) reported that they were making cuts to
reassure their shareholders, even though their business was in a stable
Brexit poses strategic challenges at several levels of the organisation. At the corporate level, key questions might include whether to relocate headquarters, restructure for tax or capital purposes, acquire within or diversify away from the UK
The idea of CFO as crisis manager has never been more necessary than now.
The nation's newspapers give their verdict on the result of the EU referendum
Administrators Duff & Phelps confirmed that although multiple offers for BHS were received, attempts at a rescue deal collapsed