|
|
|
50% of companies planning job cuts amid economic downturn: Report
|
|
|
|
Top Stories |
 |
|
|
|
IANS | 19 Aug, 2022
At least half of the companies worldwide are planning to lay off people,
most are reducing bonuses and rescinding job offers amid the economic
downturn, a new report has warned.
According to the
latest PwC 'Pulse: Managing business risks in 2022' survey in the US, 50
per cent of respondents are reducing their overall headcount, even as
business leaders remain concerned about hiring and retaining talent.
"At
the same time, respondents are also taking proactive steps to
streamline the workforce and establish the appropriate mix of worker
skills for the future," said the report that came out on Thursday.
This
comes as no surprise, after a frenzy of hiring and a tight labour
market over the past few years, as "executives see the distinction
between having people and having people with the right skills".
"For
example, 50 per cent of all respondents are reducing their overall
headcount, 46 per cent are dropping or reducing signing bonuses and 44
per cent are rescinding offers," the report revealed.
More than
32,000 tech workers have been laid off in the US till July, including at
Big Tech companies like Microsoft and Meta (formerly Facebook), and the
worst has not been over yet for the tech sector that has seen massive
stock sell-off.
In India, more than 25,000 startup workers have
lost jobs since the pandemic began -- and more than 12,000 have been
fired this year.
The PwC report mentioned that these precautionary actions are more in certain industries.
"Consumer
markets and technology, media and telecommunications companies, for
example, are more likely to invest in automation to address labour
shortages," the PwC report mentioned.
At the same time,
healthcare is seeing bigger talent challenges than other industries and
is more focused on rehiring employees who have recently left.
The global consulting firm last month polled more than 700 US executives and board members across industries.
With increasing economic uncertainty, 83 per cent of executives are focusing their business strategy on growth.
That
uncertainty has become the standard with business leaders feeling
cautiously optimistic about their ability to navigate future economic,
social and geopolitical uncertainty.
"On the whole, this
generation of corporate leaders have minimal experience navigating a
recession, yet with the possibility of one looming amid increasing
geopolitical divides and skyrocketing inflation, they are bullish on
their ability to handle what could be ahead," said Kathryn Kaminsky,
vice chair, trust solutions co-leader, PwC US.
"Looking forward,
executives will need to continue adjusting their business strategy and
investments to mitigate risks and capitalise on growth opportunities,"
Kaminsky added.
Nearly two-thirds of businesses (63 per cent)
have changed or are planning to change processes to address labour
shortages, up from 56 per cent in January 2022.
"Ironically, as
businesses pivot even more towards automation, it's critical to find
employees with the right combination of deep functional knowledge and
technology know-how. Without the right talent, automations can fail to
deliver on promised efficiencies and increase operational risk," the
report noted.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
 |
 |
COVID-19 has directly affected your business |
|
|
|
|
|
Commented Stories |
 |
|
|
|
|
|
|
|