Manpower, the global recruitment company, warned it expected mass layoffs in western economies in December as companies sought to slash headcount ahead of what many forecast will be one of the toughest years for the global economy since the early 1990s.

Jeffrey Joerres, chairman and chief executive officer of the US-based group, which recruits 5m people a year for its clients across 80 countries, said the crunch would come in December when corporations wrapped up their budgets for 2009.