Most Romanian companies took restructuring measures in 2010, study finds

The majority of Romanian companies, 97 percent, took restructuring measures in 2010, with plans being implemented for less than a year, while in the future these companies plan to focus on increasing sales, according to a study issued by the Roland Berger consulting company. The study also shows that ratio of companies restructuring in Romania exceeded the global average of 80 percent. “Compared with the rest of the world, the internal restructuring processes were more extensive in Romania and in Central and Eastern Europe. Most of the companies choose restructuring processes that last less than a year and only a small ratio of managers have chosen a process that is longer than 18 months”, said Codrut Pascu, managing partner at Roland Berger. “Adjusting the business plans and cost reductions were the main measures implemented during the crisis”, writes the study. More exactly, 76 percent of the Romanian companies chose to adjust their business plans, 81 percent chose to reduce their costs and others chose to reduce the staff. This method was adopted by only 65 percent of the companies. “Romania and the Central and Eastern Europe region were the most affected by the lending conditions. Lack of adequate funding was an important obstacle in the way of future development for Romania”, according to the study. Alex Camburu, alex.camburu@romania-insider.com