When forecasting a decrease in revenue or an economic downturn, Ken Bowles, CFO at WilsonHCG, suggests balancing short-term cost cuts with long-term investments.
In a conversation with reporters from the Business Journal Leadership Trust, Bowles said: “Business cycles are much shorter than they used to be, so keep that top of mind before making decisions about what costs to cut. Instead, think about how to balance cost-cutting with investment for the long term.”
“It’s better to make temporary pay cuts if you need to survive an income downturn and avoid layoffs; this will ensure your organization is ready when the economy picks up,” he added.
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