There is a growing unease among U.S. employers as 2025 draws to a close. In fact, nearly half of business leaders say theyโve already slowed or frozen hiring, and more than a third plan to cut staff before year-end.ย
Looking to 2026, even more anticipate layoffs โ and a significant number say they will replace employees with AI instead of refilling roles.
This data, based on a September survey of 1,000 business leaders by Resume.org, shows just how economic uncertainty, policy concerns, and automation are reshaping hiring strategies.
Hiring Pullbacks Are Widespread
Almost 1 in 2 companies have scaled back hiring, with 9% instituting a full hiring freeze and 41% reducing recruitment efforts. Just 9% report increasing hiring.
The top reasons behind this slowdown include:
- Economic uncertainty (63%)
- Tariffs and trade policy (38%)
- Falling revenue (35%)
- AI investments reducing the need for staff (22%)
Layoffs Are Already Hitting, and More Are Coming
So far in 2025, 39% of companies have laid off workers, and 35% expect to cut more staff before the year ends. Looking ahead, nearly 6 in 10 employers say layoffs in 2026 are likely, driven primarily by:
- Trade policy and tariffs (48%)
- Ongoing economic concerns (47%)
- AI adoption (35%)
The most vulnerable employees? Those with high salaries (48%), limited AI skills (46%), recent hires (42%), and entry-level roles (41%). Companies also flagged younger and older workers, along with H1B visa holders, as at higher risk of being cut.
AI Is Replacing Jobs, And Itโs Accelerating
Nearly 30% of companies say theyโve already used AI to replace roles in 2025. That number is expected to rise sharply, with 37% planning to replace workers with AI by the end of 2026.
In fact, 68% of companies increased AI investment this year, which is a clear sign that workforce automation is becoming a core strategy.
Roles involving repetitive tasks, process management, and administrative work are among the first to be automated. However, new categories of work are emerging around AI oversight, compliance, and human-AI collaboration โ putting pressure on workers to adapt quickly.
Companies are prioritizing cost-efficiency and AI-readiness over traditional job experience, leaving many professionals vulnerable unless they reskill. The most sought-after employees will be those who combine digital fluency with critical thinking and emotional intelligence โ qualities that machines still canโt replicate.
