New Delhi: Faced with a tough economic scenario, corporates are cutting jobs and rationalizing manpower to save on costs and the situation is likely to get worse in coming days, according to an Assocham study.

"Alongwith the increasing number of corporates rushing to banks for debt restructuring, scores of them are also being forced to go in for manpower rationalizing, reducing the headcount to save costs which they are unable to bear in the face of a difficult economic environment," according to the Assocham report on Impact of Slowdown on Employment.

The sad part is the situation is likely to become worse, rather than improve, in the weeks to come and the pain would only increase, it said.

The companies resorting to rationalization of manpower belong to sectors like infrastructure, gems and jewellery, educational solutions, realty, non-banking finance companies, especially in the gold-loan segment, media and public relations.

"More and more companies are approaching the consulting firms seeking solutions to cut costs so that they can weather the difficult economic environment vitiated by adverse global situation, pressure on currency, sinking stock market, high interest rates, inflation and limited elbow available with the government to bail out the troubled industry," it said.

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