Majority of UK businesses expect to downsize in 2002

The 11th annual UPS Europe Business Monitor survey of 1,500 top European executives has revealed that over a third of UK businesses predict they will downsize in 2002.

As the first sizeable survey of European business leaders since September 11, UK, German and Belgian business leaders also expect more redundancy notices than recruitment drives next year.

Just as business leaders have reported poorer company performance and revised downwards their levels of optimism for the future, so workforce predictions across Europe look gloomy.

Half of the business leaders surveyed may expect that their workforce remains the same but only 18 per cent believe they will take on staff, as opposed to 30 per cent who believe that their company will downsize at some stage next year.

With the exception of Spain, workforces are expected contract rather than expand.

The UK's business leaders are joined in their pessimism by both Germany and Belgium as the countries with unhappy outlooks for workforce levels in 2002.

UK predictions are more pessimistic than this time last year when results suggested that a small balance of companies would increase their workforce. The 2001 figures appear more in line with the reported corporate performance levels and suggest a move into negative performance.

The balance of UK business leaders are also expecting their workforce to decrease. (MB)