Fears of an upcoming recession have led to 17,456 job cuts
Amid a worsening global economic outlook, Accenture is set to lay off 19,000 workers, with more than half of the job losses affecting non-billable corporate functions. CEO Julie Sweet noted that companies are prioritizing compressed transformations and cost-cutting measures while investing in future growth opportunities. Other companies like Google, Meta, and Twitter have also announced mass layoffs in recent months. Meanwhile, Walmart is cutting hundreds of workers at e-commerce facilities across five US locations due to reduced evening and weekend shifts. Fear of an upcoming recession has already resulted in a surge of job cuts in the retail sector. Amazon.com is also planning to lay off an additional 9,000 employees soon. Last year, US furniture company United Furniture Industries fired all of its 2,700 workers via text or email two days before Thanksgiving. Google employees have recently sent a letter to CEO Sundar Pichai asking for various commitments during the layoff process, including a freeze on new hires.
Fears of an upcoming recession have already led retailers to announce 17,456 job cuts so far in 2023, compared with 761 in the same period last year, Reuters reported, citing a March report by executive placement firm Challenger, Gray and Christmas.
An alternative to layoffs
Instead of laying off staff, companies can ask employees if they would be willing to reduce their hours or take a temporary pay cut to help the company weather the tough times.
Vikas Agrawal, Co-founder of Infographic Design Agency Infobrandz in India commented: “It’s crucial for the company to communicate openly and transparently with employees about the situation and to be fair and equitable in any reductions that are implemented. It is also helpful to offer support services such as counseling or financial planning resources to help employees through the transition. This can help preserve jobs and maintain morale. Overall, it’s important for companies to be proactive and consider all options when faced with tough times.”