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The first half of 2024 has had its share of loud layoffs in the headlines, and more are likely in the second half.
That’s according to a new survey from ResumeTemplates.com, which surveyed 934 business leaders and found 60% said their company is likely to have layoffs in the back half of 2024.
As we've noted, an uncertain economy, stubborn interest rates and right-sizing after robust pandemic hiring are among the key factors driving layoffs at large companies — although many small businesses have continued to add employees.
ResumeTemplates' Andrew Stoner said macroeconomic factors such as consumer sentiments, which dropped in June, and further delays in anticipated interest rate cuts could be big factors in second-half layoff plans.
Why companies are having layoffs
The reasons for why companies are having layoffs vary.
Respondents cited many factors contributing to layoffs including cost-cutting measures (60%), employee performance issues (53%), artificial intelligence taking over employee workloads (51%), company restructuring (51%), declining market conditions (45%), overstaffing (35%), and other technological advancements (31%).
Mirroring other recent surveys, the majority of respondents (76%) said that workers with AI experience are less likely to face layoffs.
“I believe this trend reflects the growing demand for AI skills in today’s job market and employers’ desire to retain AI talent for future business applications and opportunities,” Stoner said. “Employees with AI skills have a significant advantage in adaptability compared to their counterparts.”
ResumeTemplates isn't the only company predicting layoffs to rise in the second half.
Andrew Challenger, senior vice president at the firm, previously said more layoffs could be in the works later this year.
“The labor market remains tight, but as labor costs continue to rise, companies will be slower to hire, and we expect further cuts will be needed," Challenger said. "This low April figure may be the calm before the storm.”
Challenger Gray & Christmas' report also found hiring plans in April were the lowest in more than a decade — and hiring plans for the first four months of 2024 were the lowest since 2016.
Additionally, recruiters say the job market has substantially changed in 2024 compared to prior years — with companies now seeing significantly more applicants per posting than they were back in 2021 or 2022.
Josh Millet, CEO of hiring-software firm Criteria Corp., recently told The Playbook.
“I do think it’s a sign of a significant shift in a really imbalanced scenario, where all the power was in the hands of job seekers to a more balanced picture now,” Millet said.
