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Survey: Half of U.S. Companies to Cut Jobs After Hiring Surge

Many businesses throught the United States are looking at reducing their employee count, according to a report from Fox Business:

That’s according to a new survey published on Thursday by consultant PwC, which last month polled more than 700 U.S. executives and board members from various industries. About half of respondents said they are preparing to reduce headcount — or already have — while 52% have implemented hiring freezes.

On top of that, roughly 46% of companies are either dropping or reducing signing bonuses, which became commonplace over the past year as businesses tried to lure in new workers amid an increasingly tight labor market. Another 44% are rescinding offers entirely, the survey showed.

Image Credit: Mohamed Hassan

Wayfair decided that it would reduce its workforce by 850 employees in response to the coronavirus pandemic and then again to “realign its investment priorities” as a result. The company saw a 55% rise in sales in 2020 because more people were buying home furnishings that year.

Unfortunately the outlet then went on to report that: “Last year, as more people ventured out, sales at Wayfair declined 3.1%.”

It was announced on August 12th, 2018 that Best Buy is cutting jobs as the company shifts to modern consumer behaviors.

The survey showed some oddities in the current labor market. Although businesses are getting more cautious and reducing their headcount, close to two-thirds of said they have increased wages or expanded mental health benefits. Nearly 70% of businesses reported allowing remote work options and letting employees take this option permanently.

There are signs that the labor market is starting to weaken: a plethora of companies, including Alphabet's Google, Walmart, Apple, Meta and Microsoft, have announced hiring freezes or layoffs in recent weeks.

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