Although most U.S. companies have already made most of their intended sweeping changes, many expect to make further cost-cutting changes this year, such as salary and hiring freezes, and reduced 401(k) matching contributions, according to an updated Watson Wyatt survey.
Watson Wyatt surveyed 245 large U.S. employers in February, and found that 52 percent have made layoffs, up from 39 percent in December. However, the number of companies planning layoffs has fallen 10 percentage points from 23 percent to 13 percent. Additionally, 56 percent now have a hiring freeze in effect, an increase from 47 percent in December’s survey, Watson Wyatt says.
Watson Wyatt says that there has been a jump in the number of companies that have put into place other changes, including salary freezes (up to 42 percent of respondents in February from 13 percent in December’s survey), reductions in 401(k) matches (up to 12 percent from 3 percent), a shortened workweek (up to 13 percent from 2 percent) and travel restrictions (up to 69 percent from 48 percent).


