22% Of Indian Companies Layoff Employees In Past One Year: Study

According to HR leaders, expertise in generative AI will rank as the most in-demand competency in 2024. Automation and AI will keep changing the nature of jobs in many industries

About 22 per cent of Indian companies implemented layoffs compared to the global average of 32 per cent in the year 2023, states the HR consulting firm Mercer | Mettl’s report released on Friday. Despite the difficult times industries are currently facing, most mid-size companies held their ground and implemented a minimal reduction in hiring, with 81 per cent of companies reporting zero layoffs. Most companies that announced layoffs were from the IT services, computer software, and financial services sectors.

This report is based on the survey data of 1500+ HR leaders in more than 20 industries across India, and it further states that the leader believes that the evolution of remote and flexible work models and the rise of gig economies continue to be critical trends among Indian recruiters. 74 per cent of HRs stated that they continue to hire freelancers, and 58 per cent reported hiring remote workers in the past year.

According to HR leaders, expertise in generative AI will rank as the most in-demand competency in 2024. Automation and AI will keep changing the nature of jobs in many industries. The job profiles most at risk of obsolescence are those of content writers and customer service representatives, with 51 per cent and 46 per cent of HR professionals, respectively, believing that AI will likely replace these positions. Demand for AI-focused jobs such as machine learning engineer and AI product engineer is anticipated to rise.

Highlighting the report's findings, Siddhartha Gupta, chief executive officer, Mercer | Mettl, said, "As we navigate through an era where skills are becoming redundant at an unprecedented pace, empowering the workforce is key. Companies need to embrace inclusivity as a mindset now more than ever to better understand their workforce and plan effectively for the future. At Mercer | Mettl, we are leading the way by helping organisations redefine their work design. With AI as our ally, organisations can upgrade their people to build winning teams that deliver.” 

Organisations are expected to place an even greater emphasis on skills in 2024. As talent acquisition strategies for the upcoming years are being planned, 68 per cent of organisations prioritise equal opportunity for all genders, making inclusive recruiting the top diversity, equity, and inclusion (DEI) priority, states the report.