Fears of recession among top reason for cutbacks
Employers and employees alike are anticipating that layoffs will continue this year, thanks to fears of recession and the growth of artificial intelligence (AI).
Findings from ResumeBuilder.com reveal that 38% of 906 employers said they are likely to lay off staff in 2024. Among them, 22% said 30% or more of their workforce will be affected by this move.
The top reason for the layoffs will be the need to reduce costs (69%), according to the research. Other factors include:
- Anticipation of an incoming recession (51%)
- Desire to increase profits (42%)
- Replacing workers with AI (39%)
The findings further add to projections indicating that employers aren't done with layoffs following widespread downsizing over the past years.
Randstad RiseSmart's 2023 Global Severance Research revealed that 96% of organisations have implemented "some kind of downsizing action" in the past 12 months. For 2024, the report revealed that 92% are anticipating further action.
Concern about employee layoffs
The findings on layoffs confirm the concerns carried by majority of employees as they enter the new year. In the United States, 85% of over 1,800 respondents in a new poll said they are worried they will lose their jobs in 2024.
According to the findings of career advice provider MyPerfectResume, 35% of US employees are "definitely worried" about losing their jobs this year, while 50% said they were a "little worried."
Nearly eight in 10 respondents (78%) cited the growth of AI as the reason on why they could be losing their jobs, according to the report. Other findings from the survey include:
- 78% expect a recession in the US in 2024
- 69% believe that competition for jobs will increase in 2024
- 45% predict a reduction in remote job openings
- 40% predict more people will suffer job burnout in 2024.
Kellie Hanna, Career Expert at MyPerfectResume, said the 2024 workplace landscape promises a "dynamic blend of challenges and opportunities."
"To succeed, workers and employers alike must recognize that adaptability is the name of the game while striking a balance between addressing challenges and seizing opportunities will determine the winners," Hanna said in a statement.
