Year-End Bonuses Decrease as Companies Anticipate Economic Softness

Survey reveals 34% of U.S. companies will not give out bonuses in 2023, up from 27% in 2022, with many of those still giving bonuses reducing the amount.

• According to a survey from Challenger, Gray & Christmas, 34% of U.S. companies will not be giving out end-of-year bonuses in 2023, an increase of seven percentage points from last year.
• Of the companies that are still giving out bonuses, many are giving less. Roughly 15% of those surveyed say they are lowering the amount of their bonuses this year.
• 24% of all the companies surveyed plan to give non-monetary awards, a decrease from 29% last year.
• Companies are cutting costs in anticipation of a perceived economic softness going into 2024.
• Job cuts across multiple industries have spiked this year, with U.S.-based firms letting go of 45,510 employees in November, a 24% jump from October.

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