downsizing actions.

how to use this data

The chart here illustrates which downsizing actions employers have taken over the last year. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time.

Use this data to help inform your downsizing strategies and to consider a variety of options to achieve an optimized workforce that supports your current and future business needs.

key highlights

• While layoffs are often a function of business downturns, 30% say their layoffs supported a strategic shift for their organization.
• Terminating temporary contracts and layoffs due to AI and automation are among the most common actions taken across all five markets, after redeployment activities.
• Reskilling continues to gain momentum in all markets except the United States. In Germany, reskilling has grown 21% since 2023.

how to use this data

The chart here illustrates which downsizing actions employers expect their companies will be taking over the next year. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time.

Use this data to understand your peers’ outlook for the near future, where talent may become available and to shape your company’s workforce plans.

key highlights

• Of all the reasons for future layoffs, the least cited globally is mergers and acquisitions (19%), indicating lower economic activity.
• More than one-third of Australian talent leaders (35%) say their companies will offer voluntary redundancies — the highest of all surveyed markets.
• 38% of life sciences and pharma talent leaders expect their companies to make layoffs due to a business downturn, the highest of all sectors.

how to use this data

The chart here illustrates how prepared employers feel to take each of the downsizing actions they expect to take in the year ahead. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time.

Talent leaders were asked to rate their preparedness as completely, mostly, somewhat, not very or not at all. With a majority grading their efforts as mostly or better, consider how your company ranks among peer organizations.

key highlights

• Most organizations believe they are completely or mostly prepared for future downsizing, with fewer than 1% saying they are not.
• When asked about their ability to respond to a variety of downsizing actions, layoffs due to AI and automation poses the biggest challenge for leaders.
• Banking and financial services organizations feel least prepared to manage layoffs due to a downturn in business, according to respondents.

how to use this data

The chart here illustrates the ways in which employers report using AI to assess and make workforce planning decisions. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time.

Adoption of AI in workforce planning appears widespread with most companies regularly using the technology to make decisions or support them in some way. Compare your strategies to better understand the ways in which your organization can use AI, as it aligns with your values.

key highlights

• Nearly all companies have either tried to or are currently using AI to support layoff and retention decisions; just 4% have not, with only 1% planning not to at all globally.
• Surprisingly, large organizations — not enterprise companies — have the highest AI adoption rates for workforce planning.
• The highest percentage of companies that have not utilized AI at all are in the U.K., accounting for 10%, compared to the global average of 4%.

how to use this data

The chart here illustrates how extensively employers report relying on AI (and human intelligence) for workforce planning decisions. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time.

Use this data to better understand your options and support your AI strategies for workforce planning, based on your company’s values and policies.

key highlights

• The most common application of AI in workforce planning is information gathering, with 68% reporting they use the technology to research industry norms, facts and practices.
• German employers (22%) are least likely to use AI to make downsizing decisions, while those in the U.S. (56%) are most likely.
• Life sciences employers (73%) are nearly three times more likely to let AI decide who to lay off and who to retain than technology companies (25%).