Jobs under threat as Oxfam expects lower donations

Oxfam could cut jobs and close some of its programmes in a drive to reduce costs by up to 15 per cent over the next three years.

The charity is expecting a fall in donations as the credit crunch begins to bite, and has started a cost-cutting review to work out how to save money.

It said that it would seek to end “lower-priority programmes” rather than cutting costs across the board, and was also considering job cuts, but has not made any final decision yet.

The two-month review will start next month, with changes expected to be implemented from April next year.

The charity said that previous experiences led it to expect fewer donations to its charity shops during the current economic downturn, but this had not yet occurred.

It said it was less concerned about income from institutions, foundations and major donors.

“We have been looking at the global economic situation in the context of our forward planning for the next three years,” said Jane Cotton, HR director at Oxfam.

“We are already aware of the impact higher food and fuel prices are having on poor people in developing countries and we recognise that the new economic reality will also have implications for Oxfam’s work and resources.

“Now more than ever it is important that we are as cost-effective and accountable as possible.

“We see this as a great opportunity to look at our ways of working and improve our efficiency to deliver our programmes.”

Source: www.thirdsector.co.uk