So, enter first gut reaction, we need to save on expenses, OK so far so good. So please make sure you vet your office related bills and pay for all your personal calls or else we will charge you for the whole bill, and please reduce the use of stationary, and we just go from cost effective to cheap on all non technical purchases. Basically, we went petty.
Then, next gut reaction, no more hiring, full stop end of story, but we need this person for a function that will increase productivity or efficiency. Sorry, no hiring, gotta save buddy.
All of a sudden, they wonder why staff is demoralised, easy it is the prevailing economic malaise, nah more like the prevailing scared and petty once over confident executives. Staff can smell fear guys.
Economic downturns are awful and not a pretty sight but remember cost cutting is subject to the law of diminishing returns and revenue enhancement the sky is the limit. You need cost cutting, efficiency and productivity increase then ask the experts.... duh....... yep you got it champ, ask your employees. Oh you forgot they were part of success and you thought they were coming on your ride. Involve your staff, they know their work, they know what, where and how to give you real savings, real productivity and efficiency.
They also have a stake in making the company thrive, harness their energy. Treat them right and the will Billy Ocean sings "When the Going Gets Tough, the Tough Get Going" http://bit.ly/1DS8jZ