80% of employees don’t trust leaders to put people before profits: Survey

Employee trust in organisational leadership is under increasing strain. A new survey commissioned by resume services company LiveCareer found that 80% of US workers rarely or never trust leaders to prioritise employee interests over profits when the two come into conflict.

The findings come at a time when companies are navigating AI adoption, organisational restructuring and workforce reductions. The research suggests many employees believe business decisions are increasingly driven by financial priorities, while communication around those decisions remains inadequate.

The survey of 900 US workers also found widespread concern about how organisations are handling conversations around artificial intelligence, raising fresh questions about transparency and leadership credibility during periods of change.

Layoffs leave lasting trust scars

The strongest signs of distrust emerged among employees who had experienced layoffs or restructuring.

According to the survey:

• Only 6% of workers said leadership clearly explained the reasons behind layoffs or restructuring efforts.
• 80% rarely or never trust leaders to prioritise employee interests over profit.
• 71% expect employers to downplay or avoid discussing how AI could affect their jobs.

The findings indicate that communication failures during workforce reductions can have a lasting impact on employee confidence in leadership.

The issue extends beyond a single organisation. Recent events across the technology sector have highlighted how quickly trust can deteriorate when employees feel excluded from critical conversations.

AI is adding a new layer of uncertainty

Concerns around artificial intelligence are becoming increasingly intertwined with employee trust.

Speaking previously about public concerns surrounding AI, Anthropic CEO Dario Amodei described resistance to the technology as a broader "crisis of trust" rooted in anxieties that existed long before AI entered the workplace.

The LiveCareer findings suggest similar concerns are now playing out inside organisations. Many employees appear to believe employers are not being fully transparent about how AI could reshape roles, responsibilities and future workforce needs.

As organisations accelerate AI deployment, leadership teams face growing pressure to explain not only how the technology works, but also what it means for jobs and career development.

Communication failures continue to challenge leaders

Recent examples from the technology sector illustrate the consequences of weak communication during periods of change.

At Meta, morale reportedly dropped to one of its lowest levels in nearly two decades following layoffs and an AI-related reorganisation earlier this year. According to comments reported by HR Executive, Chief Technology Officer Andrew Bosworth acknowledged leadership had done "an atrocious job" explaining the changes to employees.

Separate research from Gallup found that 29% of US employees believe leaders do not communicate clearly, honestly or consistently.

The findings point to a broader challenge facing employers. While workforce decisions may be unavoidable, employees increasingly judge leaders by how those decisions are communicated.

The experience at Oracle earlier this year also highlighted how quickly information can spread beyond formal corporate channels. According to reporting cited by HR Executive, employee reactions appeared on LinkedIn within minutes of layoff notifications being distributed, limiting leadership's ability to shape the narrative after the fact.

Wellbeing emerges as a major credibility test

The survey identified employee wellbeing as the area where trust is weakest.

Key findings include:

• 42% of respondents said they do not trust leadership at all to consider employee wellbeing when making decisions.
• Only 6% said they completely trust leaders to prioritise employee wellbeing.

The data suggests employees are increasingly sceptical about whether wellbeing commitments remain a priority when organisations face financial or operational pressures.

For HR leaders, the findings underline the challenge of maintaining credibility while balancing business performance, workforce expectations and technological change.

Some organisations are taking a different approach

Not all discussions around AI and workforce transformation are centred on headcount reduction.

Industry analyst Josh Bersin, speaking at HR Tech Europe, said organisations risk making both strategic and communication mistakes when they focus primarily on how many jobs AI can eliminate.

Examples from IBM suggest an alternative path. According to comments previously reported by HR Executive, IBM Chief Human Resources Officer Nickle LaMoreaux said the company generated US$4.5 billion in cash flow and saved 22 million work hours over three years by redesigning workflows around AI rather than using the technology to justify predetermined workforce cuts.

The contrast highlights a growing debate among business leaders over whether AI should be positioned primarily as a productivity tool or as a workforce reduction strategy.

Trust may become the defining leadership challenge

The LiveCareer findings arrive as organisations face mounting pressure to manage economic uncertainty, technological disruption and employee expectations simultaneously.

The report's authors noted that businesses will continue to face difficult decisions. However, the survey suggests employees are paying close attention not only to the decisions themselves, but also to how leaders communicate them.

As AI adoption accelerates and workplace transformation continues, leadership credibility may increasingly depend on transparency, consistency and the ability to build trust during periods of uncertainty.