US firms reduce their white-collar workforces
(MENAFN) Over the past three years, publicly listed companies in the US have collectively trimmed their white-collar staff by 3.5 percent, based on figures from employment tracking firm Live Data Technologies. Moreover, around 20 percent of S\&P 500 companies have seen workforce reductions over the last decade.
As stated by reports, "The cuts go beyond typical cost-trimming and speak to a broader shift in philosophy." Once considered a signal of robust growth and forward-looking confidence, expanding headcounts is increasingly seen as a potential leadership mistake.
Part of this change is attributed to innovations like generative AI, which help organizations maintain output while relying on fewer employees. Yet the shift goes beyond just technology. From large corporations such as Amazon and Bank of America to smaller firms nationwide, a growing consensus suggests that having too many employees may actually hinder efficiency. According to reports, "The message from many bosses: Anyone still on the payroll could be working harder."
This new approach challenges the usual rhythm of employment trends. In the past, layoffs were typical during economic downturns, followed by increased hiring during recovery periods. However, the current round of workforce reductions is taking place alongside rising revenues and profits, signaling a fundamental change in how company leaders assess their staffing strategies.
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