More Layoffs Ahead?

Watson Wyatt is one of the world's largest benefit consulting firms so they work with many employers. They regularly survey companies for their future hiring and firing plans. Their just released February survey offers some optimism that the heavy layoffs may soon be ending:

"A new update to an ongoing series of surveys conducted by Watson Wyatt, a leading global consulting firm, shows that most companies have already made most of their intended sweeping changes. However, many expect to make further cost-cutting changes this year, such as salary and hiring freezes, and reduced 401(k) matching contributions."

"According to the survey of 245 large U.S. employers conducted last week, 52 percent have made layoffs, up from 39 percent two months ago. However, the number of companies planning layoffs has fallen 10 percentage points from 23 percent to 13 percent. Additionally, 56 percent now have a hiring freeze in effect, an increase from 47 percent in December’s survey."

"There has been a jump in the number of companies that have put into place other changes as well. These include salary freezes (up to 42 percent of respondents now from 13 percent in December’s survey), reductions in 401(k) matches (up to 12 percent from 3 percent), a shortened workweek (up to 13 percent from 2 percent) and travel restrictions (up to 69 percent from 48 percent)."

HR program	Already made change			Expecting to make change
	Feb 2009	Dec 2008	Oct 2008	Feb 2009	Dec 2008	Oct 2008
Add/increase restrictions to company travel policy	69%	48%	34%	10%	16%	21%
Hiring freeze	56%	47%	30%	10%	18%	25%
Layoffs/reduction in force	52%	39%	19%	13%	23%	26%
Eliminate or reduce the hiring of seasonal workers	44%	28%	17%	9%	16%	18%
Salary freeze	42%	13%	4%	14%	19%	12%