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News » Remote workers face higher layoff risk vs. hybrid, in-office staff

Remote workers face higher layoff risk vs. hybrid, in-office staff

NEW YORK, UNITED STATES — As companies announce layoffs, data shows that fully remote employees are more likely to be let go compared to hybrid or in-office staff. 

A recent analysis of two million employees by Live Data Technologies found that 10% of fully remote workers were laid off in 2023, compared to just 7% of hybrid and in-office staff.

“When a hiring manager gets news they have to cut 10% of the staff, it’s easier to put someone on the list you don’t have a close personal relationship with,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm.

This disparity is also intentional in some cases. Furniture retailer Wayfair stated that remote employees would be more affected by layoffs as they believe staff should be in the office most days. Executives think the company’s “best work is done in person.”

The tech sector, with its broader remote work adoption, is driving much of the data, with over 240,000 employees laid off globally, according to data aggregation website Layoffs.fyi.

But across industries, fully remote staff express more concern about job security than hybrid and in-office employees. A recent survey by Resume Builder found that remote employees are 24% less likely to get promotions and raises compared to in-office staff, though they report greater job satisfaction. 

Meanwhile, Christian Ulbrich, CEO of Jones Lang LaSalle, highlights a practical perspective, “If you have a person working in finance who’s not coming to the office, why wouldn’t you hire that same person in India or in the Philippines?”

The current trends suggest a challenging landscape for remote workers, both in job security and career progression.

Read more here.

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