U.S. companies replace laid-off workers with offshore employees: Resume Builder survey
CALIFORNIA, UNITED STATES — Nearly one-third of U.S. companies that recently underwent layoffs have replaced their terminated employees with offshore workers.
This was revealed from a July 2024 survey conducted by ResumeBuilder.com, which polled 600 business leaders involved in employee termination decisions.
Customer service and tech roles most affected by offshore replacement
The survey found that 30% of companies with recent layoffs have already replaced U.S. workers with offshore employees.
Additionally, 24% of these companies plan to continue this practice in 2025, further reducing their U.S.-based workforce.
Customer service and tech positions were the most affected roles, with 58% and 49% of replacements respectively.
Other commonly offshored roles included data entry (47%), digital marketing (41%), and manufacturing (40%).
Reasons behind shift to offshoring
Cost savings emerged as the primary motivation, cited by 74% of companies. Other factors included workforce flexibility (60%), increased productivity (59%), and access to specialized skills (59%).
Among companies that replaced laid-off employees with offshore workers, a substantial portion reported replacing large segments of their workforce.
Notably, 17% of these companies replaced 51% to 75% of their laid-off U.S. employees with offshore workers, while 9% replaced as much as 76% to 100%.
Workforce impact of offshoring
“Offshore workers live in countries where they have been working globally for years, so there is an existing experienced workforce in place… By doing so, they [companies] can maintain or even improve efficiency while significantly reducing expenses,” Stacie Haller, Chief Career Advisor, explained.
However, Haller also warned about the potential consequences: “This approach raises ethical concerns and can impact employee morale, trust, and the overall perception of the company’s commitment to its domestic workforce.”
Companies are encouraged to balance cost savings with the ethical treatment of their employees.
“To maintain a motivated and committed workforce, organizations must prioritize transparency, fairness, and ethical treatment of their employees,” Haller concluded.
