A recent survey conducted by ResumeBuilder has revealed that 40% of companies are preparing for staff reductions in 2024, with over half of these businesses intending to impose a freeze on new hires. This trend in downsizing is not limited to small and medium-sized enterprises, as several major firms have also announced significant job cuts. For example, Nike is planning to implement a $2 billion cost reduction over the next three years, potentially resulting in job losses. Similarly, Hasbro is expected to reduce its workforce by nearly 20%, while Spotify, Roku, Amazon, Citi, Flexport Logistics, and Charles Schwab are all making notable staff adjustments.
From the survey, it appears that layoffs are anticipated at varying rates across different industries, with construction and software sectors being the most affected at 66% and 65% respectively. Other industries, such as information, retail, finance and insurance, education, healthcare, and social assistance are also expecting layoffs at significant rates.
Several factors are driving these cutbacks. Firstly, the increasing adoption of artificial intelligence (AI) tools is enabling companies to accomplish more with fewer resources. The impact of this technological shift on the job market is substantial, as evidenced by a recent Goldman Sachs study which suggests that over 300 million full-time jobs worldwide could be affected by generative AI tools. Additionally, the prevailing economic uncertainty, compounded by global geopolitical challenges and fluctuating financial conditions, is causing businesses to exercise caution in their hiring and retention strategies. Lastly, rising interest rates and inflation are adding to the complexities faced by businesses, influencing their decision-making processes and expenditure allocation.
The current job market outlook indicates a reduction in hiring activities, as highlighted by a 4.9% decrease in recruitment in November, with expectations of this trend continuing. Given this environment, individuals concerned about their job security can take proactive steps to prepare for potential career changes. This can involve updating their resume and social media profiles, exploring entrepreneurial opportunities, or seeking professional coaching to navigate through unforeseen professional circumstances.
In light of this information, individuals impacted by the anticipated job cuts in 2024 are encouraged to assess their options and take proactive measures to secure their professional future.