Worksheets for three rounds of cost cuts

This section contains skeleton worksheets for you to use in making cost/benefit estimates for each round of cost cutting described in this chapter.

Round 1: Across-The-Board Cost Cuts

Spreadsheet for Calculating Cost Savings

Line	Item	Savings
1	Number of employees taking voluntary severance	[No. X Annual total compensation cost per employee]*
2	Number of employees taking early retirement	(No. X Annual total compensation cost per employee)*
3	Cut overtime	(% X Total annual salary cost)
4	Mandatory pay cut	(% X Total annual salary cost)
5	Perquisite reduction	(% X Total annual perquisite cost)
6	Reduced 401k contribution	(% X Total annual salary cost)
7	Reduced annual pay increases	(% X Total annual salary cost)
8	Reduced annual bonuses	(% X Total annual salary cost)
9	Hiring freeze	[No. X Annual total compensation cost per employee per year]
10	Grand total annual savings	(Sum Lines 1–9)

*First year savings impacted by severance costs.