Financial Times FT.com

Cost control: Beware of cutting off the branch on which you sit

By Ross Tieman

Published: October 1 2009 16:33 | Last updated: October 1 2009 16:33

When a company gets into trouble, the finance department is usually the first to know. What brings businesses to their knees – and destroys some – is lack of cash: to repay loans, settle supplier invoices, and even meet the wage bill.

We all know how companies react. Hiring stops, travel budgets are trimmed, cost-cuts are called for and lay-offs often follow.

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