Cost-cutting is not a strategy

During tough times, some companies go straight to cost-cutting as a 'strategy' for survival. Cost-cutting is a tool, not a strategy.

It is only useful if you have a vision of what you want to achieve. Use it as a tool very deliberately and very carefully. Asking your staff to do more with less or telling staff 'we must reduce headcount' is like declaring war on them personally. They won't react well if you treat their existence as the enemy.