Nearly six in ten U.S. employers say they intend to cut staff this year, according to a survey of 1,000 business decision-makers that points to a sharp shift in corporate hiring strategy. The findings land as companies across sectors are already acting on those plans, trimming headcount in response to economic uncertainty, trade policy disruptions, and the rapid adoption of artificial intelligence. For workers, the numbers signal a job market that could tighten considerably over the coming months.
Survey Finds 58% of Employers Planning Layoffs
A recent poll of U.S. business leaders conducted by Pollfish for Resume.org found that 58% of companies plan to lay off employees in 2026. Respondents largely pointed to economic uncertainty, tariffs, and AI as the primary forces pushing them toward workforce reductions. Tariff-related cost increases are pressuring margins, AI tools are reducing the need for certain administrative and analytical roles, and a murky macroeconomic outlook is making executives more cautious about carrying what they see as discretionary headcount.
The survey results extend beyond outright layoffs. Many of the 1,000 decision-makers also indicated plans to freeze or slow hiring, signaling that even firms not actively cutting jobs are stepping back from expansion. That combination of direct reductions and stalled recruitment means fewer opportunities for job seekers and less leverage for workers seeking promotions or pay increases. Because the Pollfish sample covers a wide range of industries and company sizes, the data suggests a broad-based pullback rather than a problem confined to a single sector.
Flat Pay Budgets Reinforce the Cost-Cutting Signal
Layoff plans are emerging alongside stagnant pay expectations. Research from Mercer, a global HR consulting firm, indicates that most U.S. employers intend to keep their 2026 salary increase budgets essentially flat compared with 2025, according to a recent analysis of compensation plans. When companies hold raises steady while simultaneously preparing to reduce headcount, it underscores a clear strategic pivot toward cost containment and away from the aggressive bidding for talent that characterized the immediate post-pandemic years.
For employees who remain after cuts, flat salary budgets can translate into real financial strain. Inflation has cooled from its peak but consumer prices remain elevated compared with pre-pandemic norms, meaning that a raise similar to last year’s may not keep pace with living costs. Workers who absorb the responsibilities of departed colleagues may find themselves doing more with little additional pay, and the threat of layoffs can make them reluctant to push for better compensation. The combined effect is a workplace environment where loyalty and extra effort are less likely to be rewarded with meaningful financial gains.
Amazon and the Corporate Efficiency Wave
The shift described in surveys is already visible in headline-making cuts. Amazon recently eliminated about 16,000 corporate roles in a fresh round of reductions, according to reporting from The Associated Press. Company leaders framed the move as part of a broader efficiency drive, pointing to automation and AI as levers that allow the company to maintain or even increase output while relying on fewer white-collar employees. Because Amazon is both a major employer and an industry bellwether, its decisions often signal or accelerate broader corporate trends.
Those trends are already evident across the broader economy. Early 2026 saw a wave of workforce reductions as corporate America moved to streamline operations and lean more heavily on new technologies, with Reuters coverage highlighting job cuts stretching from technology firms to media organizations. Many of these businesses remain profitable, but executives are betting that investing in AI and automation now will pay off in the form of lower long-term labor costs. Unlike past layoff cycles that followed sharp revenue declines, this round is often framed as a proactive restructuring aimed at reshaping work rather than simply surviving a downturn.
Mid-Level Workers Bear the Heaviest Risk
Within this restructuring, mid-level roles appear particularly exposed. Entry-level positions frequently survive because they are relatively inexpensive and necessary to keep basic operations running, while senior executives retain authority over strategy, client relationships, and high-stakes decisions that current AI tools cannot fully replicate. In the middle, however, are managers, analysts, and coordinators whose daily tasks (preparing reports, synthesizing data, managing calendars, and overseeing routine projects) overlap significantly with what modern AI systems can handle at scale.
This dynamic threatens to hollow out the corporate middle and deepen income divides. Highly specialized workers who design, implement, or direct AI systems may see their bargaining power increase, while many lower-wage, in-person service roles remain comparatively insulated from software-driven automation. Mid-career professionals, by contrast, risk displacement without clear lateral options. The Resume.org findings, built on Pollfish sampling across multiple sectors, suggest that this pattern is not restricted to traditional tech hubs: retailers, financial institutions, and professional services firms are all reassessing which mid-tier roles still justify their cost in an AI-augmented environment.
What Workers and Job Seekers Should Expect
For individuals, the immediate implication is that roles centered on routine information processing are likely under heightened scrutiny. Employees whose value proposition rests on compiling standard reports, coordinating predictable workflows, or handling repetitive customer inquiries should assume that management is exploring whether AI tools can deliver similar outcomes more cheaply. That does not guarantee that every such position will vanish, but it means the threshold for keeping those roles on the payroll is rising. Workers who can pair domain expertise with the ability to supervise or enhance AI outputs may be better positioned than those who simply execute repeatable tasks.
Job seekers are confronting a parallel challenge in a market where many companies are planning both layoffs and deliberate hiring slowdowns. With fewer openings and more applicants competing for each role, candidates may need to broaden their search to adjacent functions, emphasize adaptability, and demonstrate comfort working alongside AI tools rather than being replaced by them. Upskilling in areas such as data literacy, prompt design, and cross-functional collaboration can help, but the broader reality remains: as employers prioritize efficiency and cost control, workers at all levels will need to be more strategic about how they position their skills, negotiate their pay, and plan for potential disruption in an increasingly automated labor market.
More From The Daily Overview
*This article was researched with the help of AI, with human editors creating the final content.
Grant Mercer covers market dynamics, business trends, and the economic forces driving growth across industries. His analysis connects macro movements with real-world implications for investors, entrepreneurs, and professionals. Through his work at The Daily Overview, Grant helps readers understand how markets function and where opportunities may emerge.
