Resume.org, the leading platform for building a resume, has released new findings from a December 2025 survey of 1,000 U.S. hiring managers about workforce plans for 2026. The results show that hiring remains strong heading into the new year, but layoffs are still expected at many organizations as companies restructure around shifting priorities.
Most companies plan to hire in 2026. In the survey, 92% of hiring managers report their company expects to hire next year, and 86% say hiring will begin in Q1. Companies that are not hiring cite financial caution as the top reason, with budget constraints (48%), revenue uncertainty (39%), and pressure to control costs (38%) as the leading barriers.
Layoffs remain widespread in 2026 workforce planning. More than half of hiring managers (55%) say their company expects layoffs next year. Nearly half (48%) say layoffs will definitely or probably occur in Q1, including 17% who say layoffs will definitely occur and 31% who say they probably will.
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Companies cite AI (44%), reorganization or restructuring (42%), and budget constraints (39%) as the top drivers of layoffs, suggesting workforce reductions are part of broader realignment and cost-control strategies rather than tied to one single factor.
"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," says Kara Dennison, Head of Career Advising at Resume.org. "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."
Although AI is influencing staffing decisions, most companies are not seeing full job replacement. Only 9% say AI has fully replaced certain roles, while 45% say it has partially reduced the need for new hires and another 45% report little to no impact on staffing levels. At the same time, 59% admit they emphasize AI when explaining hiring freezes or layoffs because it plays better with stakeholders than citing financial constraints.
"AI has become an explanation because it sounds strategic and forward-looking," says Dennison. "But when AI is used as a blanket explanation, and workloads do not meaningfully change, trust erodes quickly."
Looking ahead, companies are prioritizing candidates with problem-solving skills (54%), the ability to learn new tools quickly (44%), and communication skills (43%), indicating employers are focused on adaptability and impact rather than titles or tenure.
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Source: PRnewswire
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