Layoffs, Outsourcing Part Of Long-Term Strategy, CEOs Say

ByJohn S. McClenahen In a PricewaterhouseCoopers survey of 1,161 CEOs of multinational corporations around the world, some 50% report they've laid off workers and 46% say they have outsourced non-core company functions as economies have weakened. Significantly, the chief executives view the changes as long-term adjustments to company strategy, not short-term fixes. The survey also shows CEOs trying to preserve those things they consider important to their companies' future growth and competitiveness. For example, 82% say they've refrained from cutting back on R&D, 76% have resisted curtailing expansion plans and 76% have tried not to close plants or offices. The study results were released Jan. 31 at the World Economic Forum in New York.