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Restructuring, redundancy advice sought as firms face inflationary pressures

December 16, 2023
in Business
Restructuring, redundancy advice sought as firms face inflationary pressures
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Employers and Manufacturers Association (EMA) is seeing increasing demand from employers looking for advice on restructuring and redundancy, as they look to cut costs.

EMA head of advocacy Alan McDonald said requests had been steadily rising through the year, with a sharp increase over the past four months.

EMA head of advocacy Alan McDonald says people will lose jobs.
Photo: RNZ / Dan Cook

“In the year to November, demand for restructuring and redundancy support has increased by nearly 50 percent as businesses responded to the economic slowdown,” McDonald said, adding more will be known with the release of third-quarter economic data on 14 December.

“What we are hearing directly from our members is that the economy and business conditions are incredibly difficult,” he said.

“Inflationary pressures are still strong, and this is increasing the cost of doing business, while rising interest rates are dampening consumer demand and increasing debt servicing costs.

“As a result, many business owners have few options and are being forced to look at how they can reduce costs, including their staffing costs.”

Jobs would be lost, he said.

“The reality is that while New Zealand might technically not be in a recession, for many businesses up and down the country it will feel like we are.

“Businesses will be looking to the new government to move quickly, focus on the economy and make doing business in New Zealand easier.

“This includes supporting efforts to bring inflation down, cutting red tape, and reducing the costs of doing business.”

McDonald said the business community wanted government policies aimed at rebuilding confidence and encouraging investment, innovation and entrepreneurship.

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