According to KPMG's quarterly National Business Confidence Survey, more than half now plan to reduce their staff head count over the coming months, with a similar number planning to implement recruitment freezes.
Back in March 2008 when the same organisations were questioned for KPMG by Opinion Leader Research, only 29% were looking at job cuts as a cost-saving measure.

Malcolm Edge, regional chairman for KPMG in the North, said: "The clouds that were on the horizon when we first conducted this survey back in early spring are now right overhead, with businesses now feeling the impact of this so-called 'perfect storm' of rising inflation, tightening credit conditions and plummeting consumer confidence.

"With six out of 10 businesses looking to cut cost this may seem like the obvious, albeit painful, solution. The widespread redundancy programmes we have already seen in the financial services and housebuilding sectors may therefore just be a small sign of things to come.

"It is particularly interesting to note that 80% of the organisations who took part in our survey were based outside London, signifying that the credit crunch may finally have hit home across the UK regions."
The report also found the general mood of British business has significantly darkened over the course of the quarter, with 75% of executives confirming that their organisation has been negatively
impacted by the credit crunch.

Only 40% of people surveyed now feel optimistic about their own company's prospects for the forthcoming year, compared to 60% who were feeling bullish in March.