Cost reduction and cost cutting: the guide
Reducing cost to a target without breaking the business, by sizing the big buckets, choosing the right levers, and counting the one-time cost of each cut.
Last reviewedWhat strong candidates can do
- Split costs into large, sized buckets
- Build a path to a savings target from several levers
- Count one-time costs and protect costs that drive revenue or quality
Common questions
What is a cost reduction case?
Reducing cost to a target without breaking the business, by sizing the big buckets, choosing the right levers, and counting the one-time cost of each cut.
How do you approach a cost reduction case?
Split costs into buckets, size them, target the largest ones that can be cut, and check that the cuts do not hurt revenue or quality.
What is the most common mistake in a cost reduction case?
Cutting every bucket by the same percentage, or cutting costs that drive revenue.
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