Massive Layoffs Are Coming in 2024

Mass layoffs are in store for 2024, and it might end up affecting nearly half of companies, according to a new poll.

That's the latest information from a Resume Builder survey, based on responses from more than 900 companies this month. Resume Builder is a professional platform that allows users to create resumes in just a few steps.

In the survey, nearly four in 10 companies said they are likely to have layoffs in 2024, prompting increased fears of a recession around the corner. More than half of companies also said they plan to implement a hiring freeze in 2024.

When asked why the companies were engaging in the layoffs, half said the anticipation of a recession was a reason. Meanwhile, a little less, four in 10 said they are going to lay off employees and replace workers with artificial intelligence (AI).

The news comes as Google is reportedly gearing up to lay off 30,000 employees in its ad sales units in favor of AI ad tech.

In 2023, 65 percent of business leaders said their companies already had layoffs, with 25 percent saying they laid off 30 percent or more of the workforce.

In 2024, substantial numbers of the workforce may be let go as well, as 22 percent of the companies who plan layoffs in the new year said 30 percent or more of their staff would be fired.

Who Will Be Laid Off First?

While an overwhelming number of companies indicated layoffs are to be expected in the new year, not all companies or industries are equally at risk.

There was a slight division in midsize and large companies compared to small companies. While 42 percent of midsized and 39 percent of large companies indicated layoffs were coming, only 28 percent of small company business leaders said the same.

Industry-wise, construction and software companies were by far the most likely to predict layoffs in the next year, at 66 and 65 percent, respectively.

Meanwhile, information, retail and finance and insurance companies will likely see some employee turmoil as well, with 44 percent of information and retail companies and 38 percent of finance companies saying layoffs are anticipated.

To determine if your job is in jeopardy will likely require you to analyze your own performance at the company, the survey indicates.

"A performance-based approach to layoffs is what 62 percent of companies say they take, while 17 percent say they use 'last in, first out,'" the survey said.

"Especially for small businesses, there are some tried and true methods in regard to avoiding layoffs," Alex Mastin, the CEO and founder of coffee brewing website Home Grounds, said in a statement.

"It really does begin with thinking outside the box and generating new ideas for revenue, marketing, and reducing overhead costs. For businesses of any size, it may also be helpful to expand job roles for single employees to reduce staffing amounts—and additional salaries."

Mastin said workers can also make themselves more valuable with a "willingness to train on multiple functions."

"If most companies are doing performance-based layoffs, now is not the time to be complacent or checked out of your position," Resume Builder's resume and career strategist Julia Toothacre said in a statement. "Make sure you are keeping track of your wins and impact in your position and share information with your manager regularly."

AI Layoffs Arriving Soon

If your job can be easily replaced by current AI technology though, it might be time to worry.

Nearly four in 10 business leaders said layoffs are happening to replace workers with AI.

"Because AI continues to be a reason for layoffs, take time to learn how to leverage AI in your position and which AI programs might impact your work the most," Toothacre said. "Learn about them and become the 'go-to' person. You want to be the employee your manager can't imagine going on without."

Steven Chizen, a California based employment attorney, said layoffs are typically based on some combination of business needs, job redundancy and performance. But there are still steps you can take to make your departure from your company less likely.

"Workers should always ask themselves, 'How can I make myself indispensable?' Then, when an inevitable layoff arrives, they will be lower on the list of potentially impacted employees." Chizen told Newsweek.

With the job market likely to be unstable in 2024, workers will still need to network and put feelers out in case they are indeed let go, Chizen added.

Updating your LinkedIn profile sooner rather than later is also a good idea. Engaging in skills-based training to become more employable will also help employees as they navigate the next uncertain year, with analytics, social media and of course AI being top in demand skills.

Employees who do wind up being fired will likely be forced to rely on savings, but many Americans are without this necessary cushion, according to Michal Strahilevitz, the director of the Elfenworks Center for Responsible Business and a professor at St. Mary's College of California.

"Although we are all told to have enough savings as a cushion in case things like this happen, very few people have such a cushion," Strahilevitz told Newsweek.

The median savings balance for Americans is $5,300, according to recent numbers from the Federal Reserve. That amount can quickly be depleted in a month or two though when considering housing, grocery and childcare costs.

Employees who get saved during layoffs are likely to see negative impacts too.

"Even those who are not laid off may find their workload increasing, as often the duties performed by those laid off end up in the laps of those who remain," Strahilevitz said.

"It's also extremely bad for morale to be at a company with layoffs, even if you're not one of the people laid off. It's sad. It's painful to watch colleagues you like working with being laid off."

Correction 12/28/23, 11:23 a.m. ET: This article was updated to reflect that Google is preparing to lay off 30,000 employees, not 300,000.