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The benefits of strategic cost reduction

Future CFO

Cost reduction initiatives can yield significant benefits for organisations and their employees when approached strategically and executed effectively. It should be noted, however, that cost cutting should not be approached as a reactionary, short-term measure, but as a strategic investment in the future of the company.

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How to Reduce Operating Costs

CFO Share

Capacity reduction is a prudent form of cost management and brings immediate cash savings. Cost management can be self-defeating when expense reductions create quality issues like long wait times, lower product quality, or slower processing. Forecasting avoids cutting too little, too much, or ineffective restructuring.