Will the Rest of 2024 See More Mass Layoffs? Here’s What Career Experts Foresee
Written by
Nicole Spector
Edited by
Chris Cluff
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Last year was catastrophic for employees in some industries. Companies planned 721,677 job cuts, a 98% leap from 2022, according to a report from professional outplacement firm Challenger, Gray & Christmas.
The blow was felt throughout numerous job sectors, but tech was hit especially hard. Mega companies including Amazon, Alphabet (Google), Microsoft and Meta (Facebook) each slashed thousands of jobs, forcing workers to scramble for other ways to make money.
So far in 2024, things haven’t been much better. Tech again has been walloped. As of May, the sector had endured 89,000 job cuts across more than 300 companies, according to independent layoffs tracker Layoffs.fyi. Other industries that have seen massive layoffs include auto, education, healthcare and media.
GOBankingRates talked with career experts to find out what the rest of the year could look like.
Some Experts Are Optimistic
Alas, there is no crystal ball that shows for sure whether there will be more major layoffs this year.
“It is difficult to predict with certainty whether 2024 will see more mass layoffs,” said Sunaree Komolchomalee, head of human resources at Cupid PR.
Still, Komolchomalee is optimistic.
“From where we’re positioned right now, I think we’ve passed through that phase,” Komolchomalee said. “Why? Economy wise we’re pretty much stable. With a stable economy, businesses feel more secure and don’t feel the need for mass layoffs.”
Some Experts Are Not So Optimistic
Other career experts, such as Lauren Winans, CEO and principal HR consultant at Next Level Benefits, are less optimistic.
“Yes, it appears that more mass layoffs across various industries are likely in 2024,” Winans said.
Why could there be more mass layoffs to come? Noah Yosif, chief economist at the American Staffing Association, highlighted one major problem: higher business costs driven by higher interest rates.
Some industries are more susceptible than others, meaning not all sectors will feel these pains that often lead to layoffs.
“This phenomenon is not afflicting all segments of the economy equally,” Yosif said. “Those less sensitive to interest rates, as well as those with greater skills gaps and existing post-pandemic labor shortages, are likely to see few, if any, layoffs given their sustained demand for labor.”
Why Are Companies Laying Off Employees in 2024?
When speculating on whether there will be more mass layoffs over the next several months, it’s worth pinning down why companies slash tons of jobs at once in the first place.
“Sectors that overhired when the economy was in full expansion mode are the most susceptible to shedding workers to lower their labor costs,” Yosif said.
Emerging and widely spreading technologies are also a factor. Winans points to AI, for example, as a technology that’s having a major impact on jobs. This impact will only intensify in the coming months and years. According to a poll of 2,000 executives, conducted by Swiss staffing firm Adecco Group with research firm Oxford Economics, 41% of them expect to employ fewer people because of AI.
And then we’ve got the economic and political uncertainties swirling around — with a presidential election on the near-immediate horizon.
“[These factors are] causing employers to assess their organizational structures to better position themselves for the continued impact of higher interest rates and recession concerns during a presidential election year,” Winans said.
In the event that there are more mass layoffs over the next several months, the wave shouldn’t be as devastating as what we saw in the beginning of the year.
“While layoffs are expected to persist in 2024, especially in the tech sector,” Winans said, “there are signs that the rate may not be as severe as it was in early 2024.”
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