Companies Are Not Hiring In 2026
Episode
20 min
Read time
2 min
Topics
Career Growth, Productivity, Health & Wellness
AI-Generated Summary
Key Takeaways
- ✓Corporate hiring freeze data: 66% of CEOs surveyed by Yale School of Management plan to either fire workers or maintain current team sizes in 2026, with companies like Shopify and Chime Financial keeping employee bases flat while investing in AI over people.
- ✓Employee retention spike: IBM reports voluntary attrition under 2% compared to typical 7%, the lowest rate in 30 years, indicating workers choose to stay put during economic uncertainty. Wells Fargo reduced workforce from 275,000 in 2019 to 210,000 today through cost cutting.
- ✓Economic recovery indicators: Lower taxes starting January, continued deregulation, and declining interest rates may drive business growth in 2026. No taxes on tips affects 80 million hourly workers (55% of workforce), potentially stimulating consumer spending and business revenue despite current hiring freezes.
- ✓Management style flexibility: Successful CEOs like Jensen Huang (60 direct reports) and Brian Halligan (15 direct reports) reject conventional management advice to develop personalized leadership approaches. Direct public feedback and rapid firing decisions prove effective when building large organizations despite contradicting traditional management books.
What It Covers
Major corporations plan to freeze hiring in 2026 due to economic uncertainty and AI efficiency gains, while the hosts debate whether improving economic conditions will reverse this trend and discuss their own aggressive hiring strategies.
Key Questions Answered
- •Corporate hiring freeze data: 66% of CEOs surveyed by Yale School of Management plan to either fire workers or maintain current team sizes in 2026, with companies like Shopify and Chime Financial keeping employee bases flat while investing in AI over people.
- •Employee retention spike: IBM reports voluntary attrition under 2% compared to typical 7%, the lowest rate in 30 years, indicating workers choose to stay put during economic uncertainty. Wells Fargo reduced workforce from 275,000 in 2019 to 210,000 today through cost cutting.
- •Economic recovery indicators: Lower taxes starting January, continued deregulation, and declining interest rates may drive business growth in 2026. No taxes on tips affects 80 million hourly workers (55% of workforce), potentially stimulating consumer spending and business revenue despite current hiring freezes.
- •Management style flexibility: Successful CEOs like Jensen Huang (60 direct reports) and Brian Halligan (15 direct reports) reject conventional management advice to develop personalized leadership approaches. Direct public feedback and rapid firing decisions prove effective when building large organizations despite contradicting traditional management books.
Notable Moment
The hosts reveal their contrarian hiring strategy for 2026, planning aggressive recruitment in Q1 despite industry-wide freezes, betting that economic improvements will create competitive advantage through early talent acquisition while competitors remain cautious and understaffed.
Episode Transcript
I actually have a good one to start with here. I have it highlighted in green. I wanna talk about why companies are not hiring in 2026, more specifically, big companies. Have you seen this trend? I have not seen that trend. I assume companies are hiring in 2026. So we let's talk about what these big companies are doing, and then let's talk about what we're doing. Because I I think you and I are probably, I'll speak for myself. I we are looking to make a more aggressive push. But if you look at, I'm looking at Wall Street Journal right now. Okay? So companies are outlining plans for 2026. Hiring isn't one of them. So this is why big companies are not hiring in in 2026. So you got Shopify, Chime Financial. They're vowing to keep the size of their employee bases roughly flat. And then Midtown Manhattan, this is a gathering of CEOs by the Yale School of Management. 66% of leaders surveyed said they plan to either fire workers or maintain the size of their existing teams and only a third said they plan to hire. So, right now you have, you know, someone saying you're seeing a lot of wait and see. Some of the looming uncertainty will mean that we're going to see an investment in capital over people. So employment unemployment rose 44.6% in November. It's the highest in four years, while The US added jobs and, you know, health care and education. I think what's going on right now is is what you're seeing too is, like, IBM. This will be the last point over here. IBM employees are leaving the technology giant at the lowest rate in thirty years. Thirty years, dude. And so he's basically saying that the CEO, Arvind of IBM, voluntary attrition IBM is under 2%, which is amazing. Okay? A decline from the typical 7%. So people are looking to stay pat right now. And then at the same time, big companies, they're looking to see what type of efficiencies they're gonna gain from AI, I think, in 2026. I don't I I think we're gonna continue to figure things out, but at least for for us, I think it's worth talking about. And before I switch it over to you to see what you're doing right now, I'll here's another data point. Wells Fargo CEO said, the bank expected to have fewer people as it heads into next year. The company's workforce has fallen from roughly 275,000 people in 2019 to about 210,000 today as executives had cut costs and overhauled the bank. Let me give you another bonus. My, one of my relatives who works, in the government, he's like, many people have been cut, and I'm all for it. I'm like, why why would you say you're all for it? He's like, because we're too bloated. So I'll flip it over to you. What are you guys doing? There so we haven't been …
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