U.S. Workers Continue to Report Downsizing

Gallup found that 21% of U.S. employees say their employer is reducing its workforce, a level that has remained steady after rising sharply between 2022 and 2025. Despite concerns about artificial intelligence replacing workers, only 1% of laid-off employees cited AI or automation as the primary reason for their job loss. Instead, restructuring, budget cuts and broader economic conditions were the most commonly reported causes of layoffs.

These findings suggest that workforce reductions remain a reality across many industries, but cost pressures and organizational restructuring—not AI displacement—are driving most employment changes. This creates relevance for staffing, workforce development, education, financial services and HR-related organizations that help businesses and workers navigate a changing labor market.