Hiring plans still strong for most employers
Artificial intelligence and company reorganisation will be driving layoffs in the United States in 2026, according to a new poll among hiring managers, which found that organisations are "rebalancing" their workforce this year.
Findings from Resume.org revealed that 56% of hiring managers expect layoffs to happen in their organisation, including 17% who said they will definitely happen in the first quarter.
The top reasons behind company layoffs are AI or automation (17%) and reorganisation or restructuring (17%), according to the report. Other reasons cited include:
- Budget constraints (15%)
- Pressure to control costs (14%)
- Broader economic uncertainty (11%)
- Revenue uncertainty (10%)
- Interest rates (9%)
- Unclear business outlook (6%)
Kara Dennison, Resume.org's head of career advising, said organisations are laying off in areas that are not aligned with near-term priorities.
"Most organisations are reducing roles that are higher-cost, slower to yield ROI, or misaligned with new operating models," Dennison said in a statement.
"That often includes layers of middle management, duplicated functions after reorganisations, and roles tied to legacy processes."
The findings come after US-based employers announced more than 1.2 million job cuts in 2025, up 58% from 2024 and the highest since 2020, when more than 2.3 million cuts were announced in the country, according to data from Challenger, Gray, and Christmas, Inc.
Restructuring accounted for 133,611 cuts in 2025 in the US, the data further revealed. AI was also cited in 71,825 job cut announcements last year.
Hiring plans strong
Despite widespread layoff plans, the Resume.org report revealed that employers are still "aggressively" hiring in some areas.
It found that 92% of hiring managers expect their company to hire in 2026, with 86% saying it will begin in the first quarter.
Hiring managers are also looking more into skills rather than titles or tenure, as the report found that 54% of the respondents are prioritising candidates with problem-solving skills.
Other hiring managers are also putting a premium on candidates who can learn new tools quickly (44%) and have communication skills (43%), according to the report.
"What we are seeing is workforce rebalancing," Dennison said. "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."
