European job cuts to slow
European firms anticipate that job shedding will reduce significantly over the next six months, according to research from consultant Watson Wyatt.
European firms anticipate that job shedding will reduce significantly over the next six months, according to research from consultant Watson Wyatt.
Almost half (47%) of organisations surveyed across Europe, as well as Africa and the Middle East, cut their permanent workforce in the past six months, while only 30% predict they will do so over the next six months. The research also shows that while 60% of companies had imposed hiring freezes in the past six months, only 38% plan to maintain them going forward.
However, almost half (45%) of companies in some countries – such as Ireland, France, the Netherlands and the UK – anticipate that reductions in the permanent workforce will continue over the next six months.
| EMEA companies’ hiring/layoff expectations | ||
| Last six months | Next six months | |
| Layoffs/reduction in permanent employees | 47% | 30% |
| Reduction in temporary employees | 48% | 27% |
| Eliminate/reduce hiring of seasonal workers | 25% | 16% |
| Hiring freeze | 60% | 38% |
| Increase hiring of permanent employees | 4% | 8% |
| Increase hiring of temporary/contract workers | 6% | 6% |
Carole Hathaway, European head of strategic reward at Watson Wyatt, says: “The speed and depth of the downturn is reflected in the degree to which redundancies and pay freezes have been applied, but the prevalence of these actions looks set to decrease significantly during 2010.”
