About two-thirds of UK firms are planning to make job cuts as the UK heads towards a recession, new research shows.
A study by law firm Peninsula reveals that 64 per cent of managers refused to rule out making redundancies in the coming months as the economic situation worsens.
It also found that 75 per cent of firm have or plan to impose a freeze on recruitment in a bid to tackle rising costs.
Peter Done, managing director of the legal company, said: "It is understandable that businesses want to be in good shape coming out of this economic uncertainty and so redundancies cannot be ruled out."
Firms should inform staff of their intentions so they do not suffer unnecessary worry, he added.
The Peninsula study seems to indicate that the mood among employers has worsened since KPMG conducted a similar study in July.
The accountancy firm found that 53 per cent of employers were planning to cut jobs in order to save money.
