CEOs eye AI adoption as primary 2026 goal with job cuts expected to continue

Summary

SHRM’s recent CEO survey finds a sharp focus on AI for 2026: three quarters of CEOs (75%) expect further workforce reductions next year, while AI adoption is the most-cited primary objective — outranking revenue growth and attracting top talent. Executives say they’re under pressure to prove AI will boost financial results. Economic factors such as inflation and tariffs are also driving cautious hiring and restructuring decisions.

The report cites broader labour trends: 81% of CEOs expect rising labour costs and 74% foresee restructuring; many firms plan to lean more on contractors, gig workers and freelancers. Outside data underscore the risk of continued job cuts — Challenger, Gray & Christmas reported October’s layoffs were up 175% year-on-year and at their highest single-month total since 2008, and a Resume.org survey found about 3 in 10 employers have already shed jobs to AI, with 37% expecting to do so by the end of 2026.

SHRM’s president Johnny Taylor urged employers to balance technological progress with care for employees. SHRM will follow with CHRO and worker-perspective reports in early January, and early indications show CHROs largely align with CEOs on AI concerns and economic uncertainty.

Key Points

75% of CEOs expect further workforce reductions in the coming year, according to SHRM.
AI adoption is the top priority for 2026, ahead of revenue growth and talent attraction.
Executives face pressure to show AI delivers financial value, not just headcount savings.
Inflation, tariffs and other economic uncertainties are contributing factors in hiring slowdowns and layoffs.
October job cuts rose 175% year-on-year (Challenger, Gray & Christmas); Resume.org reports ~30% of employers have already cut roles due to AI, 37% expect to by end-2026.
81% of CEOs expect rising labour costs; 74% anticipate restructuring and increased use of contractors and gig workers.
Despite cuts, 27% of CEOs still prioritise attracting top talent — signalling persistent skills shortages.
SHRM will release complementary CHRO and worker reports in early January, with early alignment on AI adoption and uncertainty.

Why should I read this?

Because this is what every boardroom and HR team will be wrestling with next year. If you work in HR, recruitment, people ops or workforce planning, this is your heads-up: AI projects will shape roles, budgets and hiring strategies in 2026. Expect more restructuring, more contractors and an urgent need for reskilling. Read this so you can plan, not just react.

Author style

Punchy: CEOs are prioritising AI and bracing for more restructuring. If you run workforce strategy or HR policy, this is essential reading — it flags where decisions and risks will land in 2026.

Source

Source: https://www.hrdive.com/news/ceos-eye-ai-adoption-primary-2026-goal-job-cuts-continue/807326/