According to this article from the Associated Press, in the short term: yes.

In the long term: maybe not.

Companies have cut jobs, benefits, and wages. They have cut operations since there is less demand for product.They have cut travel in favor of teleconferences and catered lunches.

My gosh, even Google is in on the act. They will no longer provide free bottled water at its headquarters!

While all this cost cutting, some of which probably should have been done ages ago, offers savings that show up on the bottom line, there are long term consequences:

• unemployment rate increases (no duh!)
• cutting suppliers causes more cost cutting (now at the suppliers)
• reductions are often done without any plan how to ramp back up when the recession is over, so the company may not survive the recovery

As Brian Bethune, Chief Financial Economist at IHS Global Insight says, "You create a vicious circle where the corporate sector cannabilizes itself."

Gruesome picture, isn't it?

Bottom line (where everyone is focused these days):

You may be forced to cut costs but you need to be smart about it. Ignore the future at your own peril.