As the impact of the global economic crisis takes hold, one-fifth of U.S. employers have instituted layoffs and another 26% expect to shed jobs in the next 12 months, according to a survey by global consulting firm Watson Wyatt (see chart below).
“As they respond to the new environment, companies will have to balance how to control costs, maintain employee morale and prepare for future staffing challenges,” says Paul Platten, director of Watson Wyatt’s Human Capital Group.
According to the survey, conducted in mid-October, 30% of employers have already instituted hiring freezes and another 25% plan to do so within the next 12 months.
More than 35% of firms say they will restructure their organizations to cope with tighter cash flows. More than half are putting restrictions on employee travel.