For the first time since 2020, more U.S. CEOs anticipate reducing their workforce than expanding it, according to a new survey by The Conference Board. The shift highlights both economic pressures and the growing reliance on artificial intelligence and automation to manage costs and boost productivity.
The August report found that 34% of CEOs expect to shrink their workforce in the next 12 months, compared with 27% who plan to hire. Another 39% expect staffing levels to remain stable. The findings mark the fifth consecutive quarter of rising expectations for job cuts, signaling that workforce contraction is becoming a sustained trend.
Executives cited rising expenses for suppliers, technology, materials, and wages as key concerns. To offset these costs, many said they will invest more heavily in automation and AI tools. Leaders indicated that digital technologies not only streamline operations but also help address ongoing difficulties in recruiting skilled workers, particularly in specialized roles.
The survey also revealed mixed views on the broader economy. While confidence improved from a sharp decline earlier this year, only a minority of CEOs expect conditions to strengthen in the coming months. About one-third foresee worsening circumstances, while another third are cautiously optimistic about improvement. Industry-specific outlooks showed a similar split.
For employees, the picture is less encouraging. A separate study by Eagle Hill Consulting reported record-low worker confidence in the job market. As a result, more employees are choosing to stay put, continuing a trend that began earlier this year.
Source: HR Drive