According to a recent survey conducted by Resume Builder, there are predictions of widespread layoffs in 2024, potentially impacting nearly half of all companies. The survey, which garnered responses from over 900 businesses, highlights that around 40 percent of companies foresee employee layoffs in the upcoming year, fueling heightened apprehensions about a potential recession. Furthermore, over 50 percent of companies have indicated intentions to impose a hiring freeze in 2024.
When questioned about the reasons for these workforce reductions, half of the companies mentioned the expectation of an impending recession, while almost 40 percent indicated their intention to replace employees with artificial intelligence (AI). This development coincides with reports of Google gearing up to dismiss 30,000 employees from its ad sales units in favor of AI ad tech.
The survey also unveiled that in 2023, 65 percent of business leaders had already implemented layoffs, with a quarter of them letting go of 30 percent or more of their workforce. Looking forward to 2024, approximately 22 percent of companies planning layoffs specified that 30 percent or more of their staff would be subject to termination.
However, not all companies or industries are equally at risk. The survey highlighted a slight division between midsize and large companies compared to small businesses. While 39 percent of large companies and 42 percent of midsize, anticipated layoffs, only 28 percent of small company business leaders shared the same view.
Regarding industries, construction and software firms emerged as the most prone to foresee layoffs in the upcoming year, with 66 percent and 65 percent anticipating employee reductions, respectively. Additionally, information, retail, finance, and insurance sectors also signaled the possibility of layoffs, with 44 percent of information and retail companies, and 38 percent of finance companies sharing similar concerns.
The survey emphasized that analyzing individual performance within a company would likely be crucial in determining whether a job is at risk. Approximately 62 percent of companies stated that layoffs were based on a performance-based approach, while 17 percent used a “last in, first out” strategy.
With the growing prevalence of AI technology, employees in roles easily replaceable by automation may have cause for concern. Close to 40 percent of business leaders identified layoffs as a strategy for substituting human workers with AI. Experts recommend that employees familiarize themselves with pertinent AI applications and develop expertise in utilizing AI to position themselves as indispensable to their managers.
For individuals facing layoffs, relying on savings becomes paramount. Regrettably, numerous Americans lack adequate savings to support themselves during periods of unemployment. The median savings balance for Americans is a mere $5,300, which can rapidly diminish when factoring in housing, grocery, and childcare expenses.