Anticipated Mass Layoffs 2024, Expected to Affect Nearly Half of Companies
According to a recent survey conducted by Resume Builder encompassing responses from over 900 companies, a looming wave of layoffs is projected for 2024. Approximately four in 10 companies expressed intentions to implement layoffs in the upcoming year, sparking heightened concerns of an imminent economic downturn. Additionally, over half of the surveyed companies disclosed plans for a hiring freeze throughout 2024.
Among the reasons cited for the impending layoffs, half of the companies attributed their decision to the anticipation of an approaching recession. Moreover, a slightly lower percentage, roughly four in 10, indicated intentions to replace employees with artificial intelligence (AI) as part of their restructuring strategy.
This unsettling news coincides with reports that Google is gearing up to release 300,000 employees from its ad sales units in favor of AI-powered ad technology. In 2023, 65 percent of business leaders admitted to having carried out layoffs, with a quarter of them letting go of 30 percent or more of their workforce.
Who All Will Be Laid Off First?
The forecast for 2024 suggests a substantial workforce reduction, with 22 percent of companies planning to terminate 30 percent or more of their staff.
Notably, while a significant number of companies foresee layoffs in the new year, the risk is not evenly distributed across all industries or company sizes. Larger businesses and midsize companies indicated a higher likelihood of layoffs compared to smaller enterprises. Industries such as construction and software companies exhibited the greatest anticipation of layoffs, with 66 percent and 65 percent projecting such actions, respectively. Meanwhile, information, retail, finance, and insurance sectors are also expected to undergo employee restructuring.
The survey suggests that assessing individual job security might require an evaluation of personal performance within the company. The approach to layoffs seems to be predominantly performance-based, with 62 percent of companies following this strategy, while 17 percent resort to a ‘last in, first out’ method.
To navigate potential job insecurities, Alex Mastin, CEO and founder of Home Grounds, advised businesses to explore innovative revenue-generating ideas, marketing strategies, and cost-cutting measures. Mastin also emphasized the value of expanding individual job roles and acquiring diverse skills to mitigate staffing requirements and additional salary expenses.
AI layoffs are on the way
Experts recommend that employees enhance their value within the company by embracing multi-functional training and consistently showcasing their impact and achievements in their roles. Amidst the rise of AI-driven layoffs, being knowledgeable about AI technology and positioning oneself as an indispensable resource within the organization is advised.
Steven Chizen, an employment attorney, suggested strategies to make oneself indispensable and emphasized the importance of networking and skill development amidst the anticipated instability in the job market for 2024.
However, in the event of layoffs, financial strain is a looming concern for affected employees. Many Americans lack sufficient savings to cushion the blow, leading to severe impacts on daily expenses such as housing, groceries, and childcare costs. Furthermore, the aftermath of layoffs may lead to increased workloads for retained employees, affecting morale within the workplace.
Overall, as 2024 approaches, the specter of mass layoffs hangs over numerous industries, prompting individuals and companies alike to brace for uncertain times ahead.