Most companies did not have comprehensive plans in place before recent layoffs and found value in utilizing freelancers to ease the transition, according to a report released today by talent platform Fiverr International (NYSE: FVRR).

The research, titled Layoffs: In the Boardroom with Decision Makers, surveyed business leaders who played a role in layoff decisions over the last six months. It found that 72% of them admitted to not having a comprehensive plan in place for their remaining employees, and many admitted concern about the impact layoffs would have on their team’s stress/burnout as well as employee morale around overall job security, cited by 89% and 91%, respectively.

“The findings showcase how companies are seeing the value of freelancers beyond reducing the workload,” Matti Yahav, chief marketing officer at Fiverr, said in a press release. “From filling skill gaps to boosting morale among remaining employees, and perhaps even playing a role in lessening the possibility of future layoffs, this shift cements a place for freelancers as an integral part of a company’s long-term structure.”

Most of the executive surveyed, 69%, confirmed they hired freelancers to support their employees post-layoff; 21% said they are planning to hire freelancers within the next six months, while 8% will hire freelancers within the next 12 months.

Less than 1% of managers surveyed said they are not planning to hire freelancers in 2025.

Respondents overwhelmingly felt that freelancers helped balance the additional workload for their teams, boosted morale among remaining team members and allowed them to spend more time focusing on longer term solutions, all cited by more than 90% of the executives surveyed.

In addition, 72% of respondents felt that shifting part of the workforce to freelance would reduce the need for layoffs in the future.

Fiverr’s Layoffs: In the Boardroom with Decision Makers survey was conducted by Censuswide and included 1,001 managers, business leaders and decision-makers who are laying off or have laid off employees within the past six months. All respondents work at mid- to large-sized companies with more than 250 employees in a range of industries across the US. The data was collected between May 17 and May 24.