Chapter 7: Step 4 - Implement Across-The-Board Cuts

Key Principles

• The first round of cost cutting should be aimed at broad-based employee groups rather than at specific individuals.

• Voluntary severance and retirement options should be carefully considered before moving ahead. They are legally complex and could lead to losing valuable human capital.

• Senior leadership should consider numerous alternatives before proceeding and balance costs that can be saved against the potential for disruptive impact.

• Companies can successfully involve employees in developing suggestions for the first round of cost cutting.