NEW YORK, June 18 (Xinhua) -- U.S. public companies have reduced their white-collar workforces by a collective 3.5 percent over the past three years, according to employment data-provider Live Data Technologies, with one in five companies in the S&P 500 having shrunk over the past decade.
"The cuts go beyond typical cost-trimming and speak to a broader shift in philosophy," reported The Wall Street Journal about the development. "Adding talent, once a sign of surging sales and confidence in the future, now means leaders must be doing something wrong."
New technologies like generative artificial intelligence are allowing companies to do more with less. But there's more to this movement. From Amazon in Seattle to Bank of America in Charlotte, North Carolina, and at companies big and small everywhere in between, there's a growing belief that having too many employees is itself an impediment. "The message from many bosses: Anyone still on the payroll could be working harder," noted the report.
All of the shrinking turns on its head the usual cycle of hiring and firing. Companies often let go of workers in recessions, then staff up when the economy picks up. Yet the workforce cuts in recent years coincide with a surge in sales and profits, heralding a more fundamental shift in the way leaders evaluate their workforces, it added.
