How Much Time Will The First Round Of Cost Cutting Take?

Planning for Round 1 of cost cutting can be done quickly, in a matter of a few days. Implementation could take weeks, however, depending on how the company decides to proceed. Realizing the benefits can take longer because some savings come in a stream over a number of months. Furthermore, modifying the retirement program, the 401(k) plan, or initiating a voluntary severance plan can require substantial analysis, legal work, documentation, and mandated communication. Thus, what may be required is a time-phased plan that outlines the time frame for implementation of each cost reduction strategy along with an estimation of the stream of cost savings over time.