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ARCHIVES » Half Of Companies Planning Layoffs Or Hiring Freezes: Survey

Half Of Companies Planning Layoffs Or Hiring Freezes: Survey

BY TYLER DURDEN

A concerning survey of 700 US executives reveals that half of them are either actively reducing headcount, or plan to – while 52% have implemented hiring freezes, according to Bloomberg.

The survey, conducted last month by consultant PwC, also found that more than 40% of executives are rescinding job offers, while a similar amount are reducing or eliminating sign-on bonuses that were all the rage amid the tight job market just months ago.

On the bright side – around 2/3 of companies are boosting pay or expanding mental-health benefits, and 70% are planning to make remote work options permanent – though at the same time, 61% said they’re requiring staff to be on site more often – which can happen at the same time depending on the job (“Roles that don’t require much in-person collaboration could go remote for good, while other staffers could be required to get back to their desks a few times a week.”)

“Firms are playing offense and defense with their talent strategies,” According to PwC’s Bhushan Sethi, who noted that employers are weighing reputational damage and employee morale when considering layoffs. “People have long memories, and social media plays a much bigger role now.”

Bloomberg suggests that the findings illustrate “the contradictory nature of today’s labor market, where skilled workers can still largely name their terms amid talent shortages even as companies look to let people go elsewhere, particularly in hard-hit industries like technology and real estate.”

US job growth last month blew past economist estimates, while Labor Department data Thursday showed a drop in applications for unemployment insurance, suggesting demand for workers remains healthy. But layoffs and hiring freezes also are becoming more widespread, and not just at overheated tech startups that grew too fast. Oracle Corp.Walmart Inc. and Apple Inc. are among the big employers that have announced cutbacks in recent weeks.  -Bloomberg

Withe fewer employees in offices, some organizations are looking to save on overhead – with more than 20% of those polled said they plan to decrease their investment in real estate. Conversely, 31% said they were boosting property investment.

source: Half Of Companies Planning Layoffs Or Hiring Freezes: Survey | ZeroHedge

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