By Chip Cutter and Natasha Khan
Published January 12, 2024
Read on The Wall Street Journal Website
Many companies are also finding it harder to pass along increased labor costs to consumers in the form of higher prices, a reason why some executives are looking to trim workers now, said Andy Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm.
Among the roles being targeted are those in human resources—if employers plan to do less hiring in 2024—as well as some in underperforming divisions at each company seen as less relevant to the future. Many employers, particularly in tech, went on hiring sprees in 2021 and 2022 and are now concluding that their organizations remain bloated.
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More layoffs might be coming across American corporations, Challenger said, based on his conversations with executives. Though leaders will likely not slash positions across the board this year, more trims are likely.
“It’s all about cost-cutting right now,” he said.
–Sarah E. Needleman and Sebastian Herrera contributed to this article.
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SVP Andy Challenger is available for interviews on the job market, economy, and job search process. Please contact Colleen Madden Blumenfeld for more information.
