Top reasons for laying off workers include cost reduction, potential recession, greater profitability and AI
ResumeBuilder.com, the premier resource for professional resume templates and career advice, has published a recent survey report investigating the likelihood of layoffs in 2024. The report also shares insight into how companies reduced costs this year. In total, ResumeBuilder.com surveyed 906 business leaders from organizations with over 10 employees.
Based on the survey, 65 percent of business leaders say they had layoffs at their company this year. Of this group, 25 percent say they laid off 30 percent or more of their workforce. Likewise, 38 percent of business leaders say they believe layoffs are likely at their organization in 2024. Of this group, 22 percent say 30 percent or more of the workforce may be laid off. Additionally, 52 percent say their company will likely implement a hiring freeze in 2024.
Furthermore, 69 percent of business leaders say layoffs are likely due to ‘need to reduce costs,’ 51 percent say ‘anticipation of an upcoming recession,’ 42 percent say ‘desire to increase profits,’ and 39 percent say ‘replacing workers with AI.’ While 62 percent of companies say they have a performance-based approach to layoffs, 17 percent of companies say they use the ‘last in, first out’ approach.
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“If most companies are doing performance-based layoffs, now is not the time to be complacent or checked out of your position,” says ResumeBuilder’s resume and career strategist Julia Toothacre. “Make sure you are keeping track of your wins and impact in your position and share information with your manager regularly.”
Survey results also highlight actions that companies have taken this year to reduce costs. This includes reducing or eliminating signing bonuses, lowering or discontinuing holiday gifts or bonuses, reducing or suspending employee benefits, and decreasing current employees’ salaries. Of respondents who say their company has reduced employee salaries, 49 percent say middle managers have been affected, 47 percent say entry-level employees, 45 percent say intermediate-level employees, and 43 percent say first-level managers. Senior managers and C-suite executives were the least likely to have their compensation reduced.
This survey was commissioned by ResumeBuilder.com and conducted online by the survey platform Pollfish. It was launched on December 7, 2023, and 906 respondents completed the full survey. To qualify for the survey, all participants had to work at a company with at least 11 employees and have one of the following job titles: C-level executive, director, president/CEO/chairperson, owner or partner, senior manager, or HR manager. Respondents also had to have a household income of at least $50,000.
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