A recent survey of 1,000 hiring managers found that 59% admit to emphasizing artificial intelligence (AI) as a reason for hiring freezes or layoffs, stating it “plays better with stakeholders” than citing financial constraints.
The survey is part of broader research by Resume.org on hiring trends. According to the findings, while 92% of companies plan to hire in 2026, 55% also intend 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 added: “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 primary drivers behind workforce reductions, companies cited AI (44%), reorganization or restructuring (42%), and budget constraints (39%). This suggests layoffs result from a combination of factors related to broader restructuring and cost-control efforts.
Despite discussions about AI replacing jobs entirely, only 9% of respondents said AI has fully replaced certain roles. Nearly half (45%) indicated that AI has partially reduced the need for new hires. This points to AI being used more as a tool for slowing down hiring rather than directly substituting employees.
Additionally, 45% reported little or no impact from AI on staffing levels. This indicates the effect of AI varies significantly among organizations.
A notable aspect revealed by the survey is that most companies frame layoffs or slowdowns as being driven by AI because this explanation is more acceptable to stakeholders than admitting financial reasons. Nearly six out of ten companies reported doing this—17% exactly and 42% somewhat.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association and represents employers across multiple sectors such as manufacturing, retail, wholesale, contracting, and services according to its official website. The association advances competitive excellence and financial success for its members while providing advocacy and essential information to support business prosperity. It also facilitates partnerships among businesses, government entities, and academic institutions in New Jersey.
