New technology and AI along with irrelevant skills were top reasons employees were laid off according to the report Layoffs: In the Boardroom with Decision Makers

Majority of Companies (72%) Admit to Not Having Comprehensive Plans in Place Before Layoffs, According to New Fiverr Research

NEW YORK, June 20, 2024 (GLOBE NEWSWIRE) -- To help both companies and employees navigate the complexities of work during a time of mass layoffs, today, Fiverr (NYSE: FVRR) released new research aimed at identifying what managers were considering during and after recent layoffs and how they are supporting teams in the aftermath.

In the first quarter of 2024 alone, 250,000+ employees were laid off across the United States. The research, Layoffs: In the Boardroom with Decision Makers, found that 72% of leaders surveyed who played a role in layoff decisions over the last six months, admitted to not having a comprehensive plan in place for their remaining employees. Many admitted concern about the impact layoffs would have on their team’s stress/burnout (89%¹) as well as employee morale around overall job security (91%¹).

“The findings showcase how companies are seeing the value of freelancers beyond reducing the workload,” said Matti Yahav, Chief Marketing Officer at Fiverr. “From filling skill gaps to boosting morale among remaining employees, and perhaps even playing a role in lessening the possibility of future layoffs, this shift cements a place for freelancers as an integral part of a company’s long-term structure.”

Key findings from Layoffs: In the Boardroom with Decision Makers include:

How managers decided which roles to layoff:

• The top reason for roles that were laid off was new technology, where AI could increase efficiencies and reduce headcount, at 44%, closely followed by employees whose responsibilities were the lightest (42%)
• 40% of the laid off roles were skills-based, identifying employees whose skills were no longer relevant to the business
• Over hiring and expanding too much were ranked the lowest reasons for layoffs (36%)
  

How executives are supporting their employees post-layoff:

• Responses were tied when it came to how companies provided support, with 43% confirming their companies gave them access to freelancers, and reduced the workload to cope with layoffs
• 38% of respondents said they received added support from team members in other departments to help with the increased workload
• 69% of respondents confirmed they hired freelancers after layoffs
• 21% of respondents shared they are planning to hire freelancers within the next six months while 8% shared they will hire freelancers within the next twelve months
• Less than 1% of managers surveyed said they are not planning to hire freelancers in 2025
  

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