Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Hamzah Mazari – Credit Suisse.
Hamzah Mazari – Credit Suisse
Could you update us on how much of your cost takeout so far, has been permanent or structural, and how much is going to come back, when sort of volumes come back, following a couple of quarters of positive GDP as you are expecting?
Dennis Letham
I guess we had answer that, Hamza, is basically that a lot of the costs we have taken out are variable or volume related type costs that will eventually come back, but where we sit today is over the last couple of quarters with year-on-year organic revenue declines in the high teens. We’ve taken out about 10% of the workforce.
So, we think the Delta between the 10% reduction in workforce versus the probably 17%, 18% that we have been averaging on organic revenue declines gives us a fair amount of headroom in the organization today, which would support several quarters of decent organic growth before we would start to have to bleed costs back in to the organization.
So, I think we should once the recovery kicks in, see some very strong earnings leverage, but eventually that will be diluted as we get closer to what I’ll call full utilization of the workforce we have today.
Hamzah Mazari – Credit Suisse
Then, you talked about sequential business trends during the quarter are any of your major business lines showing something different in October on sort of organic sequential growth basis or is it still pretty flat across the major business?
Bob Eck
It is dead flat in October its discontinuing story that we have been talking about now for a while that although there maybe little bits of puts and takes here, when you roll everything together, the aggregate daily sales numbers are running flat.
Hamzah Mazari – Credit Suisse
On acquisitions you said you’re not chasing any acquisitions which are not actively marketed. What is that mean exactly?
Dennis Letham
We’re not out looking for things, but we’ll assess things that come across our desk.
Operator
Your next question comes from Sean Connor – BB&T Capital Markets.
Sean Connor – BB&T Capital Markets
On the cost savings you guys have taken out, could you remind us what the level of savings is on a dollar basis and then how much of that you realized in Q3?
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