NEW YORK (AP) -- U.S. companies have cut more than 550,000 jobs so far in 2008 as they try to preserve their profits in a slumping economy, but analysts say such downsizing must be done carefully for corporations to have any long-term benefits.A continuum of companies have announced plans to cut their payrolls since the economy began to weaken last year, and many chief executives are still taking a hard look at their overhead to determine who is expendable and who isn't. That means layoffs will remain a possibility across a number of sectors, from financial services to airlines and manufacturing, for quite some time.
But analysts who track the labor market believe job cuts can in some cases position companies for solid growth once a recovery begins.
"If you're going to do it, do it right," said Michael Gibbs, a professor of economics and human resources at the University of Chicago. "You need to be cautious and go slowly because every slowdown ends, and in this case it's important because there's a really good chance by the end of the year, the economy is going to be looking fine again."
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