As companies increase their investment in and adoption of artificial intelligence tools, more employers plan to replace workers with AI within the next year, according to a September report by Resume.org.
Nearly 3 in 10 companies said they’ve already replaced jobs with AI, and by the end of 2026, 37% expect to have replaced jobs with AI.
“AI adoption is going to reshape the job market more dramatically over the next 18 to 24 months than we’ve seen in decades,” Kara Dennison, head of career advising at Resume.org, said in a statement. “We’ll see continued displacement of routine and process-driven roles as well as entirely new categories of work centered on AI oversight, data ethics, prompt engineering and human-AI collaboration.”
In a survey of 1,000 U.S. business leaders, half said they’ve pulled back on hiring, 39% have conducted layoffs in 2025, 35% expect to lay off workers before the end of the year, and 58% believe layoffs are likely in 2026. Leaders cited economic uncertainty, trade policy and AI as the top reasons for reductions.
Notably, high-salary employees and those who lack AI-related skills face the highest risks for layoffs, leaders said. In addition, recently hired and entry-level workers have a higher risk.
High-salary roles may be targeted first to see immediate savings in payroll, Dennison said, adding that those without AI-related skills are particularly vulnerable at a time when companies are prioritizing automation.
“There is a push toward leaner, more tech-ready workforces where cost efficiency and agility outweigh tenure or traditional career pathways,” Dennison said. “For professionals, this is a call to start reskilling, especially in AI and emerging technologies.”
At the same time, technical skills aren’t enough, Dennison noted, emphasizing that soft skills such as adaptability, critical thinking and emotional intelligence will differentiate top talent in the future. Employers can maintain engagement and retention by upskilling workers in both digital skills and human skills.
Within the past year, most HR leaders have conducted “serial layoffs” that occurred in rapid succession, according to a survey by Careerminds. The trend has leaned toward “reactive workforce management,” rather than long-term planning, which has led to a drop in morale among remaining workers and a loss of critical skills.
But while some companies have reduced hiring due to AI, most employers appear to be more likely to train workers to use the technology, according to an analysis by the Federal Reserve Bank of New York. A handful of employers predicted AI layoffs in the near future, but analysts said these changes won’t have major effects on the overall labor market.
