Tuesday, 28 April 2009

Philippine companies reluctant to make layoffs

Manila Bulletin

Local companies have refrained from laying off people and relocating offshore as they resort to other cost cutting measures such as cutting down expenses for travel, logistics, fuel, facilities and marketing, results of the preliminary survey conducted by the Management Association of the Philippines (MAP) showed.

MAP Trade, Industry and ICT Committee chair Elizabeth Lee Tuesday unveiled the initial results of the survey on Cost of Doing Business (CODB) project.

Lee said that the survey is still ongoing but the committee considered it necessary to release the partial but significant results in order to proactively align the programs of the committee, and MAP as a whole, that will benefit the Philippine business community.

The survey was conducted on the 800 MAP members covering a cross section of industries of Philippine business in manufacturing and services.

Respondents were from multinational companies, large, medium and small enterprises. The industries range from car manufacturing, ICT, financial institutions, service providers like logistics and BPO companies.

The respondents said that the top three cost-saving measures they implemented to mitigate the impact of the global financial crisis on their operations are: Improving productivity such as the use of automation and ICT at 61 percent, business process re-engineering such as redesigning organizational processes at 33 percent, and outsourcing or out-tasking at 21 percent.

Retrenchment and offshore expansion, which means moving operations out of the Philippines, were the last viable options being considered by the companies.

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