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Three Cuts in One - Employee , Inventory & Rent

Updated: Dec 29, 2023

As this year ends in a few days, the anxiety for the next year might be at its highest in recent times. This is obvious since there are already two major conflicts going on, weather changes are more pronounced, especially with El Niño and the individual level anxiety is highest relating to the future of job and income.

In such an environment one of the toughest jobs is that of rubbing a large corporation, especially a listed one. This might sound easy to most of us but it is a tough act. The corner office has to create a balancing act where company financials are not hampered by such external volatility while keeping employees motivated.

But given what 2024 might have in store it will be one of the most difficult years for them. Given that only 50% of office spaces are running regularly with most employees still in hybrid mode. The rents of such offices would need rationalisation next year.

During 2023, when AI was just a news story there were already employees getting fired citing this reason. 2024 will be the first full year where AI will be at a decent operational level which might lead to higher job cuts.

Last week one of the largest consumer brands mentioned a slowdown and inventory pile-up that would force them to cut jobs and rationalise costs to save up to $2Bn next year.

All these might not be just a one-year phenomenon but a start of the transformation of how and at what strength corporations operate to generate the same or higher revenues.

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