Cost cutting identified as key driver of layoffs in H2 2024 –

At the start of the second half of 2024, 60% of employers expect layoffs during this era.

Three out of five firms are expected to chop jobs during this era. The finding comes from ResumeTemplates.com questionnaire 934 American business leaders to find out what number of firms plan to chop jobs. The evaluation included 41 black business leaders.

Business leaders cited cost-cutting (60%), worker productivity issues (53%) and AI displacing workload (51%) as the highest reasons for layoffs. Some 44% of firms expect to put off 30% or more of their employees.

Many firms from various industries have already reduced their workforce in the primary half of 2024. These include Goldman Sachs, Tesla, Microsoft, and Google.

Andrew Stoner, executive resume author at ResumeTemplates, addressed the potential layoffs in a press release.

“Macroeconomic factors, such as a decline in consumer sentiment and/or a delay in Fed rate cuts, could be significant factors in decisions on layoffs into the second half of 2024. Consumer sentiment weakened somewhat in June. The Fed has held its policy rate steady for a year, showing progress.”

Another problem is that only 10% of firms offer severance payments of lower than two weeks, making things difficult for those potentially in danger of being laid off.

“In addition to the direct impacts of financial burden, reduced transition time and loss of benefits, the pressures of a reduced redundancy policy can adversely affect employees who are laid off,” Stones said. “This additional pressure can lead to reduced productivity, increased stress and a reduced ability to secure a suitable role with adequate compensation.”

On the opposite hand, 75% of respondents said that staff with artificial intelligence (AI) skills are less more likely to lose their jobs.

“I believe this trend reflects the growing demand for AI skills in today’s job market and the desire of employers to retain AI talent for future business applications and opportunities,” Stoner explained. “Workers with AI skills have a significant advantage in terms of adoption compared to their counterparts.”

See more details from the survey Here.