In the coming year, notable financial giants like Nike and Intel will undergo significant staff reductions. Various factors are contributing to this trend. Alongside these layoffs, a comprehensive study suggests the implementation of a hiring freeze across most of these organizations in 2024.
Increase in Layoffs 2024 and Its Effects
According to Steemers, the US is expected to undergo a ‘short and shallow’ recession. Fortunately, it is predicted to be less severe than the COVID-19 recession. However, various sectors will experience impacts. Government and private education, healthcare, accommodation, and food services are expected to approach economic challenges more resiliently.
According to a recent survey by ResumeBuilder, 38% of global business leaders believe they will experience layoffs in 2024, primarily due to the looming recession. The ResumeBuilder talked to approximately 900 leaders at organizations with over ten employees.
This news about layoffs 2024 quickly spread as Google announced its plans to lay off 30,000 employees to integrate AI into different domains of its business.
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Across industries, the construction and software sectors have the highest risk of layoffs. A significant 44% of information and retail companies and 38% of finance companies anticipate workforce reductions.
Another widely reported factor contributing to the wave of layoffs 2024 is the increasing influence of artificial intelligence (AI). AI is rapidly making its way across various sectors, displacing human workers. Major corporations, including Dropbox, Google, and IBM, have already begun substituting employees with AI. Moreover, certain companies justify this shift by attributing it to the challenging market conditions that commenced in 2022 and have persisted ever since.
It is not easy to pinpoint who will be affected by this. Even though the risk is high, not all industries will be equally affected. For example, this layoff will approach midsize and large-scale sectors differently. It was revealed that:
- Midsized companies will most likely have 42% layoffs.
- Business leaders at large companies believe they will have 39% layoffs in 2024.
- In small business organizations, the layoffs will be 28% in 2024.
Which Companies Are Inclining Toward the Layoffs 2024?
The athletic-wear giant Nike tops the list, which announced its up-to-$2 billion cost-cutting initiative that will collectively go into effect over the next three years. This was announced on December 21 in its second-quarter earnings report.
As part of this initiative, job cuts are being implemented; however, an exact figure has yet to be provided, making it challenging to comprehend the extent of the impact on employees. Nike has opted not to disclose the precise number of roles affected. Nevertheless, the company anticipates booking pre-tax charges ranging from $400 million to $450 million. These charges are primarily attributed to severance costs.
The company also pointed out ‘increasing automation and use of technology‘ and ‘simplifying our product assortment‘ as other cost-cutting reasons.
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Layoffs in Intel
On the other hand, Intel announced more cuts in 2024 on top of the five rounds they made in 2023. By the time 2023 ends, the company will have completed its five rounds of job cuts. This new announcement is independent of the 235 employees who will be released from the Folsom, California, campus on December 31.
A company spokesperson provided additional insights into their policy, explaining that Intel is pursuing a cost-cutting strategy through various means. While acknowledging the difficulty of these decisions, the company has redefined its commitment to treating employees with dignity throughout the process.
Layoffs in Citigroup
As part of its corporate restructuring, Citigroup has also announced staff reductions. The company detailed that this strategy will cut ‘management layers,’ which will, in turn, speed up Citi’s decisions. And according to the gravity of these implementations, this will be one of the most major organizational shakeups the company will see in almost two decades.
“These changes eliminate unnecessary complexity across the bank, increase accountability for delivering excellent client service, and strengthen our ability to benefit from the natural linkages that exist amongst our businesses, all with an eye toward delivering on our medium-term targets and our transformation,” Citigroup’s CEO Jane Fraser said. Also, inside the company, this policy is being called ‘Project Bora Bora.’
This is all about layoffs 2024. As more information surfaces shortly, we will update this site immediately. So, remember to bookmark this page!
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