Many firms set to make 9% job cuts

ALMOST half of business managers expect to cut their workforces by 9% this year, a detailed study by human resource management experts at Deloitte & Touche reveals.

The survey of 303 Irish business managers shows 53% expect economic conditions to deteriorate over the next six months, with 42% expecting a reduction in numbers employed. The average expected decrease in staff numbers is 9%. The survey found 80% of business managers feel wages and salaries are their single biggest source of expense.

“By contrast, only 9% felt raw materials represent their main cost,” the survey’s authors said. Just 38% of businesses feel that pay inflation is one of their top three challenges.