A report from Resume Templates, released on January 15, indicates that 45% of U.S. managers expect their companies to implement layoffs in 2025. The anticipated reasons for these layoffs include economic difficulties, industry-specific challenges, the rise of automation and artificial intelligence, overstaffing, and potential policy changes under the Trump administration.
The report, based on a survey of 1,000 U.S. managers, reveals that 11% of respondents are certain that their companies will move forward with layoffs, while 34% believe layoffs are probable. Many managers expect modest impacts, with 28% planning to reduce their workforce by fewer than 5%, and 44% projecting cuts of between 5% and 10%.
In addition to potential layoffs, 31% of surveyed companies have already instituted hiring freezes, and 13% expect to introduce one later in the year.
Cost-reduction strategies, such as reducing bonuses, office space, salaries, and benefits, are also being considered. A third of managers reported that salary reductions would apply across the board, while another third would target low-performing employees. The remaining third plan to focus salary cuts on specific groups, such as executives or remote workers.
The impact of salary reductions on employee morale and retention is also noted, with concerns that it may result in the loss of top talent. In some cases, organizations may reduce salaries in hopes that employees will voluntarily leave, allowing for position consolidation or rehiring at lower wages.
Job seekers remain divided on their outlook for the labor market in 2025. Half are optimistic about finding a job in the next six months, while the other half expects challenges. Employed workers are primarily seeking new opportunities for better compensation, career growth, and improved work-life balance, though they also face obstacles such as a lack of hard or soft skills, according to a report from Express Employment Professionals.
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