Almost 5,000 job cuts announced as downturn continues to worsen

Nearly 5,000 job cuts were announced across sectors yesterday, suggesting the economic squeeze is becoming a harsh reality for many employers.

Some 2,200 jobs at Virgin Media, 1,000 at Taylor Wimpey, 620 at GlaxoSmithKline, and a further 300 at Yell, on top of 1,000 already announced, were made public throughout the day.

It is feared that Vodafone may also have to slash thousands of jobs.

The job cuts come ahead of next week’s Pre-Budget Report, which many employers hope will provide a solution to the downturn and sharp rise in unemployment.

John Philpott, chief economist at the Chartered Institute for Personnel and Development, told Personnel Today earlier this month that tax cuts for businesses could be set at the same average cost of unemployment to the chancellor, which would limit the cost to the public purse.

Meanwhile, the TUC has called on the government to increase Job Seeker’s Allowance to prevent hardship and provide an effective boost to the economy alongside tax cuts.

Comments are closed.