Management consultancies believe two-thirds of organisations will make “substantial” job cuts in 2009, according to research published today.
The Management Consultancies Association (MCA) Job Watch report found that firms were gearing up to swing the axe ruthlessly next year.
It quizzed 64 MCA member firms, which represent 75% of the UK consulting industry and who work for 90 of the FTSE100 companies.
The survey found that :
- Eight in 10 businesses are not well positioned to withstand the downturn
- Two-thirds of organisations are expected to make substantial lay-offs in the next 12 months.
Alan Leaman, chief executive of the MCA, said: “At these challenging times, redundancy and restructuring programmes can leave businesses more efficient, more focused and better prepared for the recovery.
“However, businesses need to ensure they don’t lose their best people as this could seriously damage their ability to compete. Recovery, once it comes, will also be slower and more painful if your best people have left and need to be replaced.”
UK unemployment could hit 2 million by Christmas, according to some forecasts.