50% US Companies Will Fire Employees To Save Cost; 52% Companies Stops Hiring (Survey Results)

According to a new survey, more than half of all US companies are not just contemplating but also planning to lay off employees in the light of economic downturn.

Companies Preparing to Slash Headcount 

To speak quantitively, as many as 52% of companies have already enacted hiring freezes, four out of 10 have rescinded jobs or axed signing bonuses for new hires, and roughly half have started laying people off or are preparing to cut headcount as per the PwC survey — which polled 700 executives and board members across the US.

This is a twist of fate as not very long ago, just a year back there were employers who were vying for employees amid the so-called “Great Resignation” when employees left corporations en masse to now, where the tables are turned, and employees are anxious about their jobs.

That being said, there are also companies which are still trying to keep top talent happy. There are 2/3rd companies which are increasing pay, expanding benefits or allowing more flexible work schedules for other workers. Some companies are embracing full-time remote work as a way of keeping high performers happy.

As many as 70% of the respondents said they’re increasing remote work options and flexibility. Whereas 61% said that they are requiring employees in collaborative roles to be in the office more. Whereas on the diametrically opposite side are 31% of those companies who are spending more money to increase their real estate footprint.

Walmart, Apple and Oracle Already In Headlines

Speaking of today, the unemployment remains historically low across the board. However, in the light of economic contraction, major corporates are gearing up to axe corporate staff. Such companies include the likes of Walmart, Apple and Oracle and have made headlines.

Bhushan Sethi, who runs PwC’s people and organization practice and helped compile the report and speaking of the talent strategies, he said that “Firms are playing offense and defense with their talent strategies”.

He also emphasizes the flipside of these layoffs, he said that such sensitive situations must be handled with care as it erodes the reputation of the company and cutting costs in the short term should be contemplated.