FOR IMMEDIATE RELEASE

Contact: Cheryl Krauss
Bain & Company
Telephone: +1 646-562-7863
cheryl.krauss@bain.com

EXECUTIVES SEE BIG SPIKE IN DOWNSIZING IN 2009; LARGEST YEAR-OVER-YEAR PERCENT INCREASES OCCURRING OUTSIDE USA

New Survey Finds Downsizing Initiatives Jumping 75% Over 2008 in Europe and Asia, More Than Double in Latin America

New York - April 7, 2009 - Companies worldwide seem poised to wring out large numbers of additional jobs from the global economy in 2009; this according to the 12th edition of Bain & Company's Management Tools & Trends survey released today. Fifty-nine percent of the 1,430 executives interviewed globally said they plan to downsize in 2009, up from the 34% who conducted layoffs in 2008. Only 37% of executives reported that their companies did not downsize in 2008 nor plan to in 2009.

"Our survey finds that most companies expect to downsize this year in the face of falling revenues and shrinking profits," said Darrell Rigby, senior partner with Bain & Company and author of the 2009 Management Tools & Trends survey. "But executives need to think carefully about the design of their downsizing initiatives. The way layoffs are implemented can have a lasting impact on a company's culture, and Bain's calculations show that unless jobs are eliminated for at least 6-12 months the company will fail to earn a financial payback."

Executives surveyed share several universal concerns about their short-term prospects and the long-term impact of the recession on business conditions:

• 71% think that government regulation of business will increase over the next five years.
  77% of North American respondents think that this will be the case
• 71% feel that the current downturn will change consumer behaviors for at least three years
• 70% are very concerned about meeting growth targets in 2009. This number jumps to 81% in Latin America
• 64% are planning for a downturn that will last at least until early 2010. This sentiment is felt equally across all regions

Brighter notes from the survey include:

• 75% of executives feel that their company will use this recession to improve their competitive position. Only 69% of North American executives surveyed agree. Though Rigby points out, "Of course, this raises a natural question about how many companies can actually improve their competitive position if so few worsen."
• Only one-in-four executives think that their company waited too long to respond to this economic downturn. This number increases to 31% when asked of executives in Asia Pacific

Other key findings from the survey:

• Established versus Emerging Markets
  • 74% of executives in established markets feel that government regulation of business will increase over the next five years, while 68% of executives in emerging markets agree
  • 63% of executives in established markets are very concerned about how their company will meet growth targets in 2009. This number jumps to 76% when asked of executives in emerging markets
• Large Companies (more than $2 billion in sales) versus Small Companies (less than $600 million in sales)
  • 69% of executives of large companies are planning for a downturn that will last at least until early 2010, only 58% of executives of small companies agree
  • 41% of executives of large companies say that their company will have significant layoffs in 2009, only 31% of executives of small companies agree
• Industry Variances
  • 27% of healthcare executives say that their company will have significant layoffs in 2009 versus the highest rate of 44% of manufacturing companies
  • 81% of financial services executives feel that the current downturn will change consumer behavior for at least three years. 64% of executives in technology, telecommunications and 62% in manufacturing agree
• Asia Pacific Country Differences
  • 40% of Chinese executives feel that their company waited too long to respond to this economic downturn. 22% of Indian executives agree. 34% of executives companies in other Asia Pacific countries agree
  • 40% of Chinese company executives expect that their company will have significant layoffs in 2009. 23% of Indian executives agree, as do 33% in other Asia Pacific countries
  • 70% of executives in China are planning for a downturn that will last at least until early 2010. 56% of Indian executives agree. 67% of executives of companies in other Asia Pacific countries agree
  • 64% of executives in India think that the current downturn will change consumer behaviors for at least three years. This number jumps to 72% in China and 82% in other parts of Asia Pacific

"While the survey highlights many common themes in this global recession, it also points to important differences across both geographies and industries," concluded Rigby. "Clearly various tools will be more important and relevant to some executives than to others, depending on a company's individual situation."

For a copy of the 2009 Management Tools & Trends survey or to schedule an interview with Darrell Rigby, please contact Cheryl Krauss at email: cheryl.krauss@bain.com or 646-562-7863, or Frank Pinto at email: frank.pinto@bain.com or 917-309-1065.

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About the 2009 Management Tools & Trends Survey

In 1993, Bain launched a multi-year research project to get the facts about management tools and trends. The objective of the survey is two-fold:

• To provide managers with information they need to identify and integrate tools that will improve bottom-line results
• To understand how global executives view their strategic challenges and priorities

Over the past 16 years, we have completed 12 surveys, assembling a database that now includes 9,933 respondents from more than 70 countries in North America, Europe, Asia, Africa, the Middle East and Latin America.

This year, we received 1,430 completed surveys from a broad range of international executives. We also conducted personal follow-up interviews to further probe the circumstances under which tools are most likely to produce desired results.

Each year, the survey focuses on 25 of the most popular tools and techniques, listed on the slide below. To qualify for inclusion, a tool had to be:

• Relevant to senior management
• Topical (as evidenced by coverage in the business press)
• Measurable

These tools are defined in a booklet titled 'Management Tools 2009, An Executive's Guide'

About Bain & Company, Inc.

Bain & Company, a leading global business consulting firm, serves clients on issues of strategy, operations, technology, organization and mergers and acquisitions. The firm was founded in 1973 on the principle that Bain consultants must measure their success by their clients' financial results. Bain clients have outperformed the stock market 4 to 1. With 39 offices in 26 countries, Bain has worked with over 3,600 major multinational, private equity and other corporations across every economic sector. For more information visit: www.bain.com.