Investopedia

Continue to Site »

Cost Cutting

Filed Under » , ,
Dictionary Says

Definition of 'Cost Cutting'

Measures implemented by a company to reduce its expenses and improve profitability. Cost cutting measures may include laying off employees, reducing employee pay, switching to a less expensive employee health insurance program, downsizing to a smaller office, lowering monthly bills, changing hours of service and restructuring debt.
Investopedia Says

Investopedia explains 'Cost Cutting'

Because salaries and wages are such a large expense, many companies look to layoffs as a cost-cutting measure when times are lean. However, there are actually many costs associated with firing people, including severance pay, unemployment benefits, rehiring costs, wrongful termination lawsuits, lowering morale, and the cost of no longer getting done what laid-off employees were doing or overworking remaining employees.

Articles Of Interest

  1.

    The Layoff Payoff: A Severance Package

    If you must leave your job, go out fighting for the best benefits you can get.

  2. Layoff Protection Plans: Good Deal Or Gimmick?

    If you get laid off, these plans can be of great value, but the best protection may be to avoid big purchases altogether.

  3. Layoffs: Know The WARNing Signs

    Layoff rumors can run rampant, but if your company is required to give you two months' notice, you can plan for unemployment.

  4. Laid Off? You Can Still Retire

    Joblessness is temporary, but neglecting your retirement savings has permanent consequences.

  5. Stop Keeping Up With The Joneses - They're Broke

    Conspicuous consumption could be robbing you of future wealth.

  6. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".

  7. Women: Invest In Your Financial Literacy

    Learning about money may seem intimidating, but it's not as hard as it looks.

  8. 6 Financial Benefits Of Spring Cleaning

    This year, combine your spring cleaning strategies with your big-picture financial objectives.

  9. Financial Statement: Extraordinary Vs. Nonrecurring Items

    When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ...

  10. Browser Extensions That Save You Money

    There is a widening range of online tools that have been designed to help citizens save their hard-earned money.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center