Hiring and Layoffs Are Happening at the Same Time – and That’s Not a Contradiction

At first glance, the 2026 workforce outlook looks contradictory.

Companies are hiring.
Companies are also laying people off.

According to a recent survey by Resume.org of 1,000 U.S. hiring managers, both are true - and happening simultaneously.

The data points to a year defined not by growth alone, but by workforce rebalancing. Employers are reshaping their organizations around new priorities, tighter budgets, and faster execution, even as they continue to add talent in specific areas.

Here’s what the data tells us - and what leaders should take away from it.

Nearly All Companies Plan to Hire in 2026 – and Most Will Start Early

Hiring intent remains strong heading into 2026. Ninety-two percent of companies say they plan to hire this year, with the vast majority (86%) expecting to do so in the first quarter.

That said, not every organization is moving forward without hesitation. Among those holding back, financial caution dominates decision-making. Nearly half cite budget constraints as the primary barrier, followed by revenue uncertainty (39%) and pressure to control costs (38%).

The message is clear: hiring is happening, but under far tighter constraints than in previous years.

Layoffs Are Still Part of the Plan for Many Employers

At the same time, workforce reductions remain firmly on the table.

Fifty-five percent of companies expect layoffs at some point in 2026, with the vast majority saying those cuts will definitely or probably happen in the first quarter alone.

The reasons behind these decisions are layered rather than singular. Companies most frequently point to:

• AI-related changes (44%)

• Reorganisation or restructuring (42%)

• Budget constraints (39%)

Rather than signaling crisis, these layoffs reflect a broader shift in how organizations are allocating resources and redefining what “essential” work looks like.

This Is Workforce Rebalancing, Not Workforce Retreat

As Resume.org’s Head of Career Advising, Kara Dennison, explains, companies are shedding roles that no longer align with near-term priorities while actively investing in functions tied to growth, efficiency, and execution speed.

Roles that tend to be reduced include:

• Higher-cost positions with slower return on investment

• Duplicated roles following reorganisations

• Jobs tied to legacy processes or outdated operating models

At the same time, companies are hiring aggressively in areas connected to revenue generation, automation, data, customer retention, and transformation.

For employers, this means every role needs a clear business case. For employees and candidates, it means opportunity still exists - but it is far more selective.

AI Is Influencing Staffing Decisions – But Not in the Way Headlines Suggest

AI is clearly part of the conversation, but its actual impact on staffing is more modest than many assume.

Only 9% of companies say AI has fully replaced certain roles. A larger group (45%) report that AI has partially reduced the need for new hires, suggesting it is often used to slow hiring rather than eliminate jobs outright. Another 45% say AI has had little to no effect on staffing levels at all.

Perhaps more telling is how AI is used in communication.

Nearly 6 in 10 companies admit they emphasise AI when explaining hiring freezes or layoffs because it is better received by stakeholders than citing financial pressure. Seventeen percent say they do this exactly, while 42% do so to some extent.

AI sounds strategic, future-focused, and inevitable. Financial strain does not.

The risk? When AI becomes a blanket explanation without meaningful changes to workloads or workflows, trust erodes quickly. Employees are perceptive, and inconsistent messaging damages credibility, morale, and retention over time.

What Companies Actually Want in 2026: Skills Over Titles

When it comes to hiring, employers are prioritizing capability, not credentials.

The most in-demand skills for 2026 are:

• Problem-solving (54%)

• Ability to learn new tools quickly (44%)

• Communication skills (43%)

Adaptability (39%) and collaboration (36%) also rank highly, reinforcing the need for people who can function effectively in changing environments.

Interestingly, familiarity with AI tools (31%) ranks below these foundational skills, and leadership potential trails further behind at 21%. Most companies are focused on immediate contribution and execution, rather than long-term management readiness.

The takeaway is straightforward: employers are buying impact, flexibility, and learning agility - not tenure or job titles.

What This Means for Employers

If your organization is hiring and restructuring at the same time, you’re not alone. But success in 2026 will depend on:

• Clear workforce planning aligned to business strategy

• Honest, transparent communication around change

• Hiring for skills that enable adaptability, not just technical competence

• Ensuring remaining teams are supported, not stretched thin

Workforce decisions made to “sound right” externally can create serious internal consequences if not handled carefully.

If you’re planning hires, managing change, or rethinking roles in 2026, now is the time to make sure your people strategy is aligned with where your business is actually going.