How to take people costs out of your business without impacting long-term value

The current economic downturn is forcing consumer businesses to look hard at their costs. However, unlike previous downturns, and in part because of them, many executives have recognised the need to reduce headcount and costs in a more sustainable manner.

By reducing headcount indiscriminately, with little consideration of operational capability trade-offs or wider strategic agendas, organisations may struggle to maintain operational performance and respond adequately to market recovery. Consumer products businesses will have to think carefully about the scale and targets of any significant headcount adjustments.

Many companies have already realised the benefits of transforming and optimising their back office functions through outsourcing, off-shoring and technology innovation. Now the focus shifts to include core operations, where losing critical capabilities could have a direct impact on the short and long-term performance of an organisation and therefore carries greater risk.

For further information, download our report ' Intelligent right-sizing and workforce transition in consumer products'.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.