Six in 10 firms blame AI for layoffs, but survey shows otherwise

Nearly six in ten companies admit they emphasise artificial intelligence when explaining layoffs or hiring freezes because it is more palatable to stakeholders than citing financial pressure, according to a new survey of hiring managers.

The findings come from a Resume.org survey of 1,000 hiring managers, which found that 59% say they frame workforce reductions around AI because it “plays better with stakeholders” than acknowledging budget constraints. The data highlights a growing gap between how job cuts are communicated and the underlying reasons driving them.

The survey paints a complex picture of labour market strategy going into 2026. While 92% of companies said they plan to hire this year, 55% also said they intend to reduce overall headcount, signalling what Resume.org describes as a broad rebalancing rather than a simple pullback.

“What we are seeing is workforce rebalancing,” said Kara Dennison, head of career advising at Resume.org. “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 said job losses are often concentrated in roles seen as costly or slow to deliver returns. “Most organisations are reducing roles that are higher-cost, slower to yield ROI, or misaligned with new operating models,” she said, pointing to middle management layers, duplicated roles following reorganisations, and positions tied to legacy processes. At the same time, firms are investing in roles linked to growth, automation, data and customer retention.

When asked about the drivers behind workforce reductions, companies cited AI adoption (44%), reorganisation or restructuring (42%), and budget constraints (39%), suggesting layoffs are typically the result of overlapping pressures rather than a single cause.

Despite frequent references to AI, the survey suggests its direct impact on jobs remains limited. Only 9% of respondents said AI had fully replaced certain roles, while 45% said it had partially reduced the need for new hires. Another 45% reported little to no impact on staffing levels, indicating that AI is more often used to slow hiring than to eliminate jobs outright.

The findings underline how AI has become a convenient narrative during periods of workforce contraction. Nearly 60% of companies acknowledged framing layoffs or hiring slowdowns as AI-driven, including 17% who said they do so explicitly and 42% who said they do so to some extent.

As companies head deeper into 2026, the survey suggests that while AI will continue to shape operating models, financial discipline and strategic reprioritisation remain the dominant forces behind job cuts—regardless of how those decisions are publicly explained.