The year 2024 has started with major corporations announcing significant job cuts. Tech players like Alphabet, Shell, Sports Illustrated, Amazon, Macy's, Microsoft, Citigroup, eBay, and Wayfair. United Parcel Service (UPS) reportedly plans to cut 12,000 jobs and mandate a return to the office for its employees. Despite mixed economic signals, the concerns are about a recession which will be caused due to artificial intelligence, resulting in layoffs, and will be causing anxiety in the tech spaces.
Targets for layoffs: Middle managers and remote workers beware
In the recent job cut wave, those who are middle managers and remote workers will be particularly vulnerable. Companies will focus on streamlining the operations at such times, leading to squeeze in the middle management roles where the remote workers, who are lacking in day-to-day interactions will be facing an increased sensitivity to layoffs.
The question of profitability, both current and future, plays an important role in determining who gets laid off.
How can the employees navigate the upcoming uncertainty: Strategies
To navigate the uncertainties in the current job market, experts will be recommending several strategies. Showing up at the workplace is advised, with the notion that the era for remote work has declined.
Commitment and active participation are considered essential attributes along with the building of a strong relationship with management and embracing change.
How can the employees be prepared: Tips
As the labour market reportedly undergoes a massive shift, the employees are advised to:
- Focus on building relationships
- Avoiding unproductive gossip
- Making existing commitments count
Although the uncertainty has been acknowledged the experts have suggested that it is not a tsunami, and as per the recent economic trends- it indicates optimism, as the blue-collar jobs remain stable, with white-collar professional services facing more challenges.
Normalizing Layoffs
Economists have been arguing that the current level of layoffs is not significantly different from the previous years, and it has been attributed to seasonal factors.
Reportedly, December and January are traditionally the period for companies to adjust their budgets and position themselves for the upcoming year. Layoffs are considered a part of the process to normalize overhiring during the pandemic, majorly in the tech sector.
Some layoffs are connected to the current business climate, marked by the high interest rates and uncertainty about their future trajectory.
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