More than two-thirds of organisations have cut learning and development funding in 2011, with the public sector hit the hardest, a survey revealed.
The Chartered Institute of Personnel and Development (CIPD) issued the results of a survey that showed a third of 600 organisations moved to inhouse learning, reducing the use of outside contractors.
Public sector funding cuts had a "widespread impact" on learning and development, said the report.
However, firms said they had increased training offered to staff from four to five days a year, albeit by using less costly methods such as e-learning.
Dr John McGurk, of the CIPD, said: "With the full impact of the spending cuts yet to be felt in the public sector, maintaining support for employee development by linking it to organisational change is essential if organisations are to steer through these uncertain and challenging times."