Is Your Office Costing You Your Job?

• Remote-working businesses are less likely to lay off employees 
• Full time office-based companies are the most likely to make redundancies 
• Year-on-year rise in firms that have made redundancies

A recent survey conducted by Startups.co.uk has revealed that remote-working businesses were less likely to make redundancies in order to stay afloat.

This is based on the Startups.co.uk finding that fully remote businesses were less likely to have made redundancies than fully office-based or hybrid companies.

Percentage of small businesses that made redundancies, by work model:

1. Full time office-based (58%)
2. Hybrid (56%)
3. Fully remote (45%)

Lower redundancy rate in remote firms 

The survey of 531 UK business leaders found that full time office-based companies reported a 13% higher redundancy rate compared to fully remote businesses. 

Over half (58%) of full-time office-based companies said they have made redundancies to ensure business growth in the current economic climate. However, this figure was significantly less among fully remote businesses, at just 45%.

Remote firms becoming less common despite stronger job security

Despite there being a stronger job security for employees working in fully remote firms, Startups.co.uk’s survey data also highlighted a year-on-year decline in fully-remote business models, with the number of respondents reporting they used this particular work model being halved from 32% in 2023 to 16% in 2024. 

Rise in firms reporting redundancies

Comparing Startups.co.uk’s most recent survey with an equivalent poll of businesses conducted a year ago, the amount of companies that have made redundancies has risen, across fully remote, hybrid and full time office-based businesses.

Last year, Startups.co.uk found that 38% of fully in-office firms had made job cuts, compared to just 16% of remote teams.

But the most recent survey findings reveal that even more business leaders made redundancies, as 58% of full-time office-based businesses have made this cost cutting measure, compared to just 45% of fully remote companies.

Editor of Startups.co.uk, Zohra Huda

“To be or not to be in the office? It’s confusing times for employers and employees alike when it comes to where and how to work. But our data shows that remote workers are potentially safer from the sack than in-office or hybrid workers. With redundancies on the rise across all work models, remote may be the way to survive in 2025.”

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