Could this lead to more flexible working?

Cutting jobs might not be the best way to save money during the economic downturn, according to one expert.

Michael Rendell, partner and global head of human resource services at PricewaterhouseCoopers (PwC), believes that there are other ways to cut costs at this moment in time.He suggests that companies consider such things as flexible working, job sharing, reduced hours and pay as alternatives to redundancies.

"Cash-strapped companies may be feeling the pressure to reduce headcount but this can be a costly exercise,"

Mr Rendell said.This applies to both payment in lieu of notice and recruiting staff once the recovery begins, he stated.

Large firms which adopt a more flexible approach during the downturn could see themselves emerge as a more "agile" institution in the long run, Mr Rendell added.

Yesterday, a report by Deloitte predicted that government intervention in the financial sector will mean that the current economic troubles last for a shorter period of time than they might have otherwise done.