Half the companies in the world plan to cut jobs: report

New Delhi: Amid the economic downturn, at least half the companies in the world are planning to carry out layoffs. More companies are also reducing bonuses and cancelling job offers.

"46% of the respondents are dropping or reducing signing bonuses and 44% are cancelling job offers."

The PwC's Pulse Survey: Managing Business Risks in 2022 in the US found that 50% of the respondents are making moves to reduce the size of their workforce. Business leaders are concerned about hiring and retaining talent.

In the US, over 32,000 tech workers have been fired since July and this includes tech giants like Microsoft and Meta. The tech sector has also seen a massive stock sell-off. In India, over 25,000 startup employees have lost their jobs in the past two years. Over 12,000 of them were fired in 2022.

The healthcare sector is seeing bigger talent challenges because it is more focused on rehiring employees who recently left.

Experts termed these as precautionary actions and they are high in certain industries like consumer markets, technology, media, and telecommunications. These sectors are more likely to invest in automation to address labour shortages, said the PwC report.

The report noted that respondents are taking proactive steps to streamline the workforce and establish an appropriate mix of worker skills for the future. Experts think this is not a surprise considering the tight labour market trend over the past few years. "Executives now see the distinction between having people and having people with the right skills."

The consulting firm's survey found that 83% of executives are focusing their business strategy on growth. Economic uncertainty has become the standard and business leaders are cautiously optimistic about their ability to navigate future economic, social, and geopolitical factors.

Kathryn Kaminsky, vice chair, Trust Solutions Co-leader, PwC US, said this generation of corporate leaders has minimal experience navigating a recession. "The possibility of a recession is rising with geopolitical divides and skyrocketing inflation. Corporate leaders are bullish on their ability to handle it."

She added that executives need to adjust their business strategy and investments to mitigate risks and capitalise on growth opportunities.