Most CEOs in a recent SHRM survey, 75%, expect to see further workforce reductions or layoffs in the broader economy next year, reflective of economic and technological uncertainties over the short term, the HR organization said Thursday.
Artificial intelligence adoption emerged as the most frequently cited primary objective for 2026 among respondents, ahead of both growing revenue and attracting top talent.
CEOs face pressure to show their organizations are leveraging AI and that doing so will improve financial results, James Atkinson, VP of thought leadership at SHRM, said during a media event announcing the research.
And while AI is expected to displace some jobs, Atkinson said executives increasingly believe the tech can create value instead of solely being used as a cost-cutting method. He added that economic developments like the effects of inflation and tariffs are among the factors that, alongside AI adoption, organizations have cited when conducting layoffs or slowing hiring.
“All of these things are related, but that hesitance really comes down to some of those challenges that are articulated here around inflation and economic uncertainty,” Atkinson said. “That makes it harder to plan when you’re not sure, or are only marginally sure, how these things may play out.”
Last month, outplacement firm Challenger, Gray & Christmas found that October job cuts were up 175% year over year and had reached their highest single-month totals since 2008. A separate survey of employers by Resume.org found that 3 in 10 respondents had already shedded jobs via AI, while 37% expected to do so by the end of 2026.
In a statement, SHRM President and CEO Johnny Taylor urged employers to balance technological progress and caring for employees.
“We must lean into AI and new technologies without losing sight of our greatest asset: our people,” Taylor said. “The future will be shaped by leaders who move faster than the disruption, who invest in upskilling and reskilling, and who build future-facing workplaces ready for anything.”
SHRM found that 81% of CEOs expected rising labor and workforce costs next year, and 74% anticipated restructuring efforts. Agility and efficiency were commonly cited reasons for making adjustments, which may take the form of hiring more independent contractors, gig workers and freelancers.
CEOs are nonetheless struggling to find skilled talent for some in-demand roles, Atkinson said, and 27% of respondents said attracting top talent is a priority over the next twelve months.
SHRM is expected to follow up its CEO survey with two additional reports — to be published early January — on CHRO and worker perspectives. Atkinson said that while SHRM was not prepared to release any findings from those reports, it has found a “good amount of alignment” between CHROs and CEOs on AI adoption as well as economic uncertainty.