The American corporate sector is convinced: fewer employees means faster growth, notes The Wall Street Journal. US public companies have reduced the number of employees in offices with a total percentage of 3.5% in the last three years, according to data provided by Live Data Technologies. In the last decade, one in five companies included in the US stock exchange index S&P 500 has reduced its size. The reduction of the number of employees goes beyond the typical costs of lowering the costs and is part of a broader change of philosophy. The addition of talents, once a sign of a strong growth of sales and confidence in the future, now means that leaders do something wrong. New technologies like generative artificial intelligence allow companies to do more with less. But there is something extra related to this movement. From Amazon to Bank of America, and to big and small companies between them, there is a growing belief that having too many employees is an impediment in itself. The message of many bosses: Any employee could work harder. All this restriction overwhelms the usual cycle of employment and layoffs. Companies often make removal in recession, then increasing their employment when the economy is advancing. However, the personnel discounts in recent years coincide with a strong increase in sales and profits, announcing a more fundamental change in how leaders evaluate their labor. Although some companies in America have reduced their dimensions, the US workforce has increased in the last decade, with the extension of the medical services sector and increasing the number of civil servants. Due to the staff restrictions, employees quickly lose the power they enjoyed during the pandemic, they are currently facing higher work volumes, more responsibilities and a constant fear regarding the safety of the workplace and the future prospects. Employees are too fearful to move, Mischa Fisher, an economist at the Udemy Education Platform, shows. And this blocks the normal flow of opportunities. The managers have become especially targets of these staff restrictions, indicates the data. And those who remain leading larger teams, this can have a negative effect. And yet, «income per employee» is again an indicator that investors and executives follow. The generative artificial intelligence already allows the executives to imagine a future with less employees. And even the smallest startups begin to adopt this approach, to get more and fewer employees.
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