How often cost-cutting programmes hit their target
Listed companies often announce a cost reduction programme with a savings target. This page follows 100+ cost programmes at larger ASX-listed companies, announced from 2012 to 2023, through the companies' later reports.
Almost half of these programmes never reported a result that could be set against their target. The outcomes below cover only those that did. A company is more likely to report a programme that went well, so the figures below may flatter the real hit rate.
Of the programmes with a reported result, 43% met or beat their target.
Source: the companies' own announcements and annual reports, 2012 to 2023. Outcomes judged by onestepright from what each company reported.
| Outcome | Share of programmes with a reported result (%) |
|---|---|
| Met or beat the target | 43 |
| Partly met | 27 |
| Abandoned or target reset | 30 |
Source: the companies' own announcements and annual reports, 2012 to 2023. Outcomes judged by onestepright from what each company reported.
- Met or beat the target. The company reported savings at or above its target.
- Partly met. The company reported savings below its target.
- Abandoned or target reset. The company dropped the programme, or changed its target before the end.
The median programme with a reported result delivered 100% of its target.
Who decides where costs are cut in your business, and who checks the result? The operating model check takes about ten minutes.