A recent survey of 1,000 hiring managers found that nearly 60% admit to emphasizing artificial intelligence (AI) as the reason for layoffs or hiring freezes because it is more acceptable to stakeholders than financial explanations. The findings are part of a larger Resume.org study examining current hiring trends.
The survey revealed that while 92% of companies intend to hire in 2026, over half plan to reduce their employee headcounts. Kara Dennison, Head of Career Advising at Resume.org, commented on the results: “What we are seeing is workforce rebalancing. Companies are laying off in areas that no longer align with near-term priorities while hiring aggressively in functions tied to revenue, transformation, and efficiency.”
Dennison further explained, “Most organizations are reducing roles that are higher-cost, slower to yield ROI, or misaligned with new operating models. That often includes layers of middle management, duplicated functions after reorganizations, and roles tied to legacy processes. At the same time, they’re investing in roles that support growth, automation, data, customer retention, and execution speed.”
When asked about the main drivers behind workforce reductions, companies cited AI (44%), reorganization or restructuring (42%), and budget constraints (39%). This indicates that layoffs result from multiple factors connected to broader strategies for restructuring and controlling costs.
Although AI has an influence on staffing decisions within organizations, only a small portion—9%—reported that AI had fully replaced certain roles. Nearly half said it partially reduced the need for new hires. This suggests AI is currently being used more as a way to slow down hiring rather than replace workers entirely.
In addition, 45% reported little or no impact from AI on overall staffing levels. This highlights significant differences across organizations regarding how much AI affects employment.
The survey also found that most companies present layoffs or slowed hiring as being caused by AI because this explanation is better received by stakeholders than admitting financial reasons. Nearly six out of ten companies acknowledged doing this; 17% said they do so exactly while another 42% admitted they do so somewhat.
The New Jersey Business and Industry Association represents employers across various sectors statewide and provides advocacy along with essential information and services aimed at supporting business prosperity in New Jersey.