Executives face layoffs as companies slash costs
CALIFORNIA, UNITED STATES — It’s not just rank-and-file employees feeling the brunt of widespread layoffs and cost-cutting measures.
Nearly half of all job cuts in 2023 were at the manager level or above — almost double the share compared to the previous five-year average, a recent study by Live Data Technologies revealed.
Meanwhile, according to Challenger, Gray & Christmas, Inc., over 1,500 CEOs departed last year – the highest since tracking began in 2002.
Sundar Pichai of Alphabet, Tim Cook of Apple, and Jamie Dimon of JPMorgan all took pay cuts amid this corporate austerity trend, as Forbes reported. Zoom founder Eric Yuan also slashed his compensation by 98%.
Investors and boards often advocate executive layoffs to tackle challenges and meet growth targets. Restructuring eliminates executive roles to reduce expenses, while strategic shifts like mergers prompt job cuts at the top.
Rising inflation, surging expenses, and the artificial intelligence (AI) boom have forced firms from various industries to restructure operations and optimize budgets.
However, the manager’s drought carries consequences. The UKG Workforce Institute found 86% of managers face burnout, including 73% of C-suite leaders, as workloads increase with fewer supervisors available for coaching and guidance.
