When are US firms not outsourcing?
The US is still reeling from the economic impact of the Brexit vote, but a growing number of companies are now doing away with some of the most labor-intensive aspects of their operations, such as offshores.
A number of large US outsourcing companies, which are in the midst of restructuring to take advantage of the post-Brexit uncertainty, are planning to slash tens of thousands of jobs, with a number of them planning to cut as many as 1,000 positions, according to a report from Bloomberg.
These firms, including United Technologies, Microsoft, Caterpillar, and Dow Chemical, are looking to hire less than 5% of the labor force to be able to keep operations afloat, Bloomberg reported.
These companies, according the report, want to cut their workforce by half, to roughly 300,000 employees, to reduce the costs of the company, which will result in higher operating costs.
In the past year, these companies have hired tens of millions of employees worldwide, mostly in the US, according Bloomberg.
Many of the outsourcing firms that have come under fire from lawmakers for outsourcing jobs have previously been successful in attracting talent, which is a key part of US corporate recruitment.
According to a survey by the US Chamber of Commerce, nearly 50% of companies surveyed have a high quality and highly skilled workforce.
However, some of these companies are moving toward outsourcing jobs that are much more labor-efficient.
For example, Caterpillars new plant in Georgia, which was initially set to hire more than 5,000 workers, now only expects to hire about 1,100, the New York Times reported.