Layoffs are coming to 30% of the workforce in 2023, according to survey

In a survey of 1,000 business leaders, one-third anticipated cutting 30% of their workforce this year.

Layoffs are coming to a third of the workforce this year.

In a recent survey by ResumeBuilder.com, business leaders were asked about their employment numbers in 2022 and how they perceive their workforce needs in 2023. Currently, about six in 10 of those organizations are likely to lay off employees next year. Among those layoffs, the survey showed they are more likely to happen at larger companies with over 500 employees at 74% vs. companies with under 500 employees at 51%.

Additionally, hiring freezes are on the table next year as well for 70% of companies who say they are ‘likely’ (31%) or ‘very likely’ (38%) to go that route. With all the unknown variables in the job market and economy next year, hiring freezes may be seen as a softer step before layoffs are needed to avoid making cuts too deep for an organization’s needs.

Another area companies have been cutting is salary and benefits, with signing bonuses taking the biggest hit. Thirty-four percent of organizations have already reduced or eliminated signing bonuses in 2022, and 34% are also reducing or eliminating holiday gifts and bonuses this year. Other actions included reducing benefits and salaries. Only 28% have taken no action to reduce these costs.

Here are some other highlights of the survey:

  • 57% of business leaders who say layoffs are likely, estimate 30% or more of their workforce will be laid off in 2023
  • 79% of business leaders say they’re likely to fire ‘quiet quitters’
  • 74% of business leaders agree it will be easier to fire poor performers next year due to employees losing bargaining power

Check out more results here.

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