Layoffs expected at half of U.S. companies, PwC survey finds
By Matthew Boyle, Bloomberg News (TNS)
If your organization isn’t letting people go, the one next door probably is.
That’s one of the main findings of a survey released Thursday by consultancy PwC, which last month surveyed more than 700 US executives and board members across various industries. Half of respondents said they were downsizing or planning to do so, and 52% had hiring freezes in place. More than four in ten rescind job offers, and a similar amount cut or eliminate signing bonuses that had become common to attract talent to a tight labor market.
At the same time, however, about two-thirds of companies are raising wages or expanding mental health benefits. The most common decision: to make remote work permanent for more people.
The findings illustrate the adversarial nature of today’s job market, where skilled workers can still largely name their terms amid talent shortages, even as companies seek to let people go elsewhere, particularly in industries. hard hit as Technology and immovable.
WE job growth last month beat economists’ estimates, while Labor Department data on Thursday showed a drop in claims for unemployment insurance, suggesting that demand for workers remains healthy. But layoffs and hiring freezes are also becoming more widespreadand not just in overheated tech startups that grew too quickly. Oracle Corp., Walmart Inc. and Apple Inc. are among the major employers who have announced budget cuts in recent weeks.
“Companies are playing attack and defense with their talent management strategies,” said Bhushan Sethi, global co-head of people practice and organization at PwC, noting that employers need to weigh the damage to the reputation and morale of employees when planning layoffs. “People have long memories, and social media plays a much bigger role now.”
The survey also revealed contradictions in companies’ approaches to remote working. While 70% of respondents said they were expanding permanent remote work options for roles that allowed it, 61% said they required employees to be in the office or on the job site more often.
Granted, some organizations might do both of these things: roles that don’t require a lot of in-person collaboration might be moved away permanently, while other staff members might be required to return to their desks several times a week. . September is to take shape to be a line in the sand for the return to work plans of many companies, even if the previous deadlines say RTO Came and went.
Fewer employees in offices often means organizations don’t need as many remote locations. More than one in five respondents told PwC that they plan to reduce their investment in real estate, making it the most common area of reduction. Yet 31% said they dominate real estate investing, again showing the divergent paths companies are taking in a business environment full of uncertainty.
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