Companies cut employees, hire contractors instead

Source: HR Specialist – 01/31/2023

Layoffs are in the news again. Some 60,000 employees nationwide have been let go since Jan. 1, according to layoffs-tracking website, mostly in the tech, media, and finance sectors.

But research conducted by in January suggests some job cuts aren’t a response to lower consumer demand in a sluggish economy but old-fashioned cost-cutting instead.

At 37% of companies surveyed, independent contractors have been brought in to replace laid-off employees. Fifty-three percent of surveyed firms have asked employees to move into contract roles.