Optimism falls as companies plan to reduce workforce and costs

The majority of large UK businesses plan to cut jobs in the coming months as a response to the worsening economy, according to research by accountancy KPMG.

The survey of 200 senior executives found that 53 per cent said they intended to lay off staff – up from 29 per cent in the March survey – while six out of 10 said they were looking to cut costs generally.