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Firms That Cut Costs Most More Likely to Fail, Independent Says

Firms that carried out the most severe cost cuts to weather the financial crisis are the most likely to fail, the Independent on Sunday reported, citing a survey by PA Consulting Group.

A survey of 200 business leaders and data from 2007 to 2010 found that the firms that reduced costs, particularly for staff, had a 10 percent lower total shareholder return than those that did not, according to the London-based consulting firm, the Independent reported.

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