Adding talent — not cutting it — leads to better revenue growth, study finds

According to a report from Orgvue, companies that increased headcount saw a 12.2% revenue growth, compared to 6.8% for companies that reduced headcount. The study analyzed corporate restructures and their impact on revenue.

The report also found that AI was responsible for less than 10% of corporate restructures, despite total severance costs reaching $50 billion across all companies in the sample. This suggests that most layoffs are driven by factors other than AI.

The study indicates that cutting headcount does not sustainably increase revenue over the long term, and that hiring more employees correlates with better growth outcomes.