Economic Uncertainty: 60% of Companies Anticipate Layoffs in 2026
In a recent survey conducted by Resume.org, a platform known for assisting individuals in resume building, alarming trends around employment have emerged. The results highlight that 58% of U.S. businesses plan to lay off employees in the coming year, citing economic uncertainty as the primary motivator. As organizations deal with increasing operational expenses and the looming influence of artificial intelligence on their workforce, many are forced to reconsider staffing strategies and hiring practices.
The study, which surveyed 1,000 U.S. business leaders in September 2025, reported that 39% of companies had already made job cuts within the year, with an additional 35% expecting further layoffs by year's end. Economic unpredictability was identified as a critical factor, mentioned by 55% of businesses contemplating layoffs. Additionally, concerns related to tariffs and trade policies impacted 39% of the respondents, while 35% pointed to the increasing reliance on AI as a contributing issue.
Hiring freezes are becoming common practice as companies stir amidst this climate. Approximately 9% of organizations acknowledged implementing hiring freezes, and 41% have slowed down the hiring process considerably, with only a mere 9% reporting any increase in recruitment efforts this year. The reasons behind the cutbacks reveal a stark reality; 63% attributed their reduced hiring capabilities to unfavorable economic conditions, while 35% specifically referenced diminished revenue as a concern. Interestingly, 22% cited that AI technologies are effectively minimizing the need for larger personnel counts, reshaping roles within teams.
Notably, not all employees are equally susceptible to these cuts. The survey indicated that high-salary roles find themselves particularly vulnerable, with 48% of managers citing these positions as most likely to be eliminated. Employees lacking skills relevant to AI and recent hires are also at significant risk, as indicated by 46% and 42% respectively. Furthermore, demographics play a vital role in risk assessment; 30% of leaders believe younger employees might face greater job insecurity, while 29% are concerned about older workers, and 19% see risks for H1B visa holders.
The increasingly integral role of AI in replacing jobs cannot be overlooked. The survey illustrated that in 2025, 27% of organizations significantly ramped up their investment in AI technologies, and 41% reported moderate increases. Alarmingly, 28% of those surveyed admitted that they had already replaced human jobs with automated systems. Projections for the end of 2026 are equally striking, with 37% anticipating further role replacements due to AI and an active restructuring of teams to prioritize automation in their operations.
Kara Dennison, the head of career advising at Resume.org, offered crucial advice, stating, "The rapid adoption of AI will transform the job landscape sooner than anticipated. To safeguard their careers, professionals should focus on enhancing both their digital literacy and human-centric skills that machines cannot replicate."
The findings of this survey underscore a critical crossroads for both employers and employees alike. As industry leaders navigate a world marked by economic fluctuations and technological advancements, a proactive approach towards skill development and staff management will be vital. Workers must take heed of these trends and adapt accordingly to remain competitive in an evolving job market. The full report can be explored at Resume.org.
The study, which surveyed 1,000 U.S. business leaders in September 2025, reported that 39% of companies had already made job cuts within the year, with an additional 35% expecting further layoffs by year's end. Economic unpredictability was identified as a critical factor, mentioned by 55% of businesses contemplating layoffs. Additionally, concerns related to tariffs and trade policies impacted 39% of the respondents, while 35% pointed to the increasing reliance on AI as a contributing issue.
Hiring freezes are becoming common practice as companies stir amidst this climate. Approximately 9% of organizations acknowledged implementing hiring freezes, and 41% have slowed down the hiring process considerably, with only a mere 9% reporting any increase in recruitment efforts this year. The reasons behind the cutbacks reveal a stark reality; 63% attributed their reduced hiring capabilities to unfavorable economic conditions, while 35% specifically referenced diminished revenue as a concern. Interestingly, 22% cited that AI technologies are effectively minimizing the need for larger personnel counts, reshaping roles within teams.
Notably, not all employees are equally susceptible to these cuts. The survey indicated that high-salary roles find themselves particularly vulnerable, with 48% of managers citing these positions as most likely to be eliminated. Employees lacking skills relevant to AI and recent hires are also at significant risk, as indicated by 46% and 42% respectively. Furthermore, demographics play a vital role in risk assessment; 30% of leaders believe younger employees might face greater job insecurity, while 29% are concerned about older workers, and 19% see risks for H1B visa holders.
The increasingly integral role of AI in replacing jobs cannot be overlooked. The survey illustrated that in 2025, 27% of organizations significantly ramped up their investment in AI technologies, and 41% reported moderate increases. Alarmingly, 28% of those surveyed admitted that they had already replaced human jobs with automated systems. Projections for the end of 2026 are equally striking, with 37% anticipating further role replacements due to AI and an active restructuring of teams to prioritize automation in their operations.
Kara Dennison, the head of career advising at Resume.org, offered crucial advice, stating, "The rapid adoption of AI will transform the job landscape sooner than anticipated. To safeguard their careers, professionals should focus on enhancing both their digital literacy and human-centric skills that machines cannot replicate."
The findings of this survey underscore a critical crossroads for both employers and employees alike. As industry leaders navigate a world marked by economic fluctuations and technological advancements, a proactive approach towards skill development and staff management will be vital. Workers must take heed of these trends and adapt accordingly to remain competitive in an evolving job market. The full report can be explored at Resume.org.
Topics Business Technology）
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