A new survey indicates that 50% of businesses are anticipating layoffs in the near future.
Key details
According to the PwC survey, technology, media, and telecom companies are planning layoffs over the next several months.
Of the 722 U.S. executives surveyed, 63% were from Fortune 1000 companies.
Half of survey respondents are looking to reduce the number of employees, instead focusing on the quality of employees. In addition to planned layoffs, 46% are reducing signing bonuses or doing away with them altogether. Around 44% rescinding employment offers.
More than half of those surveyed have implemented hiring freezes, a move that could help the companies avoid layoffs in the near future.
Even though companies are looking to shrink their overall staff, some are adding perks and benefits to entice employees to stay.
Of those surveyed, 70% are making remote work a permanent option for employees, and 64% are raising salaries. Neary 62% are adding additional mental health benefits.
Even with a significant number of companies expanding remote work options, 61% of businesses are pushing for more in-person work at the office.
Why it’s news
The somewhat antithetical findings of the survey indicate a volatile job market. Skilled laborers have options when job hunting, yet industries like technology and real estate leave employees scrambling for any openings, Bloomberg reported.
Unemployment claims fell last month, indicating a healthy job market. Even so, more companies like Apple and Walmart are announcing layoffs and hiring freezes, Bloomberg reported.
Companies could be looking to reduce expenses by cutting back on things like hiring, signing bonuses, and employee perks, anticipating a recession.
Employers like Ford, Robinhood, and Peloton laying off workers could be concerning for some job hunters as more signs point to impending layoffs.
Notable quote
“This shows that business leaders are prioritizing changing their workforce mix by ensuring they have the specialized talent needed to grow, while also managing labor costs due to the current inflation rate,” he said. “Companies need to find ways to battle rising labor costs. And we are seeing companies take a number of different approaches to this with one of them being layoffs,” said PwC leader Bhushan Sethi.