Companies Cut Back on Benefits to Employees As Economy Slows
• Companies are cutting back on non-cash benefits like 401(k) plans, insurance, and tuition assistance to reduce costs amid high inflation.
• These benefit cuts are happening most in industries like tech and finance that have faced turmoil in 2022.
• Salaries almost never go down for people staying in the same job, so companies cut costs elsewhere.
• If the economy worsens in 2024, more companies may scrutinize benefits and cut ones seen as unnecessary to retain workers.
• The tight labor market has eased recently, with October job growth slowing and unemployment ticking up, reducing workers' leverage.