According to management consultancy Able and How, the average FTSE 100 company will incur costs of £67 million through bad change management and unnecessary redundancies.
This year alone, the average FTSE 100 firm will waste £24 million through laying staff off unnecessarily, hiring replacements, and loss of productivity through low staff morale, bad communication and lack of confidence in the future.
David Ferrabee, managing director of Able and How, said: "It's like burning the furniture to keep warm. You can't quantify the cost of mishandled layoffs and lost opportunity. In the process of wielding the axe businesses are unnecessarily killing morale and losing good people. Unfortunately, they will they will end up paying for it for years to come.
"By not taking a measured approach to cost cutting, and failing to communicate with their employees, these organisations risk needlessly depleting vital reserves of capital. By contrast, big businesses that can be tempered in their response to recession and communicate effectively will thrive in the upturn."
Pointless action to combat recession could cost millions
UK firms are expected to spend 67 million in needless recession costs over the next five years.
