Majority of Companies (72%) Admit to Not Having Comprehensive Plans in Place Before Layoffs, According to New Fiverr Research
Fiverr (NYSE: FVRR) released research highlighting the lack of comprehensive layoff plans among companies. The study, involving 1,001 managers and decision-makers from mid-to-large-sized US companies, found that 72% of leaders lacked comprehensive layoff plans. Layoffs in Q1 2024 affected over 250,000 employees, with new technology and AI being key reasons for job cuts. While 89% expressed concerns about stress and burnout, 91% were worried about job security. The report noted that 97% of managers believed freelancers helped balance workloads and boost morale. Furthermore, 69% of firms hired freelancers post-layoffs, and 72% think freelance work can reduce future layoffs.
- 97% of managers noted freelancers helped balance workloads and boost morale.
- 69% of companies hired freelancers post-layoffs.
- 72% of leaders believe freelance work can reduce future layoffs.
- 72% of leaders lacked comprehensive plans for layoffs.
- 89% of managers are concerned about stress and burnout.
- 91% of managers are worried about overall job security.
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
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
“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 workload69% of respondents confirmed they hired freelancers after layoffs21% of respondents shared they are planning to hire freelancers within the next six months while8% 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
How business leaders overwhelmingly admitted to feeling concerned about team impact:
89% of respondents were concerned1 about the stress and burnout their teams may endure91% of respondents were concerned1 about overall job security at their company83% of respondents felt that layoffs led to team turnover- Respondents overwhelmingly felt that freelancers helped balance the additional workload for their teams (
97% ), boosted morale among remaining team members (95% ), and allowed them to spend more time focusing on longer term solutions (96% ) 72% of respondents felt that shifting part of the workforce to freelance would reduce the need for layoffs in the future
In relation to the new non-compete ban, an average of
Fiverr’s Layoffs: In the Boardroom with Decision Makers survey was conducted by Censuswide. Insights were provided by 1,001 managers, business leaders, and decision-makers who are doing or have done layoffs within the past six months. All respondents work at mid-to-large sized companies with 250+ employees, in industries including technology, finance, legal, entertainment, healthcare, architecture, manufacturing, and retail across the US. The data was collected between May 17, 2024 and May 24, 2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
1 ‘Very concerned’ and ‘Somewhat concerned’ answers combined.
About Fiverr
Fiverr’s mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, over 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, ranging from AI, to programming and 3D design, digital marketing to content creation, from video animation to architecture.
Don’t get left behind - come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on Instagram, and Facebook.
Media Contacts:
Siobhan Aalders
Jenny Chang
press@fiverr.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5ae74edf-1fd7-456f-9b94-607984e1d9a6
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FAQ
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