Financial services giant KPMG is to offer staff a four-day working week or sabbatical breaks in an attempt to stave off redundancies, the company confirmed yesterday.
All employees will be offered the chance of taking a break from their jobs ranging from one to three months on 30% pay, or they can opt for a shorter working week.
KPMG's 11,000 staff were told of the offer earlier yesterday, and will have until the first week of February to decide. The offer is on a voluntary basis, KPMG confirmed.
A KPMG spokesman said: "We have offered staff the possibility of a four-day working week or sabbatical leave periods. We are mindful of the difficult conditions that everyone is operating in.
"This move gives us some flexibility to manage the workforce. It helps us to avoid the need of making any redundancies."
But the move from KPMG will be seen by analysts as a further reflection of the shockwaves rippling through the City. And the government is braced for more bad news next week when new figures are set to show a big increase in the number out of work.
Jobseeker's allowance claimants topped one million last month, and the wider measure of unemployment is hurtling towards two million.
Unions fear a fresh wave of redundancies will be announced in the coming days in private firms and the public sector, while new data next week is expected to show that the UK is officially in recession.
Further jobs lost yesterday included over 400 at Newcastle upon Tyne-based frozen food firm Findus, which went into administration last week.
Around 70 jobs were also under threat at the hotel which is to host next year's Ryder Cup golf tournament.
The Celtic Manor Resort, in Newport, south Wales, is conducting a wide-ranging review to cut costs which may, a spokesman said, include a number of redundancies.
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