3 in 5 Managers Use AI To Decide Who Gets Laid Off

In July 2026, ResumeTemplates.com surveyed 1,000 U.S. managers with direct reports at companies with 501 or more employees, all of whom use AI at work, to understand how AI factors into their companies’ layoffs. 59% now use AI to help decide who gets laid off, and 24% do so often or all the time. Layoffs are not the whole story: 58% use AI to help decide firings. Beyond who gets cut, managers already use AI for everything from performance reviews to raises and promotions.

Key findings:

• 1 in 4 managers use AI to help decide who gets laid off often or all the time
• 2 in 5 managers have let AI make a layoff decision with no human review, and 17% do so often or all the time
• 1 in 3 managers who use AI for layoffs have it weigh workers’ sick days or medical leave, and 1 in 7 their age, on top of the expected performance (80%) and attendance (57%)
• 2 in 5 managers were never trained to use AI ethically in HR decisions, and 58% cannot confirm the AI was tested for bias
• More than 1 in 10 managers have already replaced a worker’s job with AI, and 1 in 5 have AI weigh whether a role could be automated

2 in 5 Managers Let AI Make Layoff Calls Unchecked

Many managers have taken a hands-off approach, letting AI make unsupervised layoff decisions. 43% do so at least occasionally, and 17% do so often or all the time. A slim majority still hold the line: 57% never let AI decide a layoff on its own.

The managers who trust the tool most are the ones most willing to give it more control. Among those very confident in AI’s layoff calls, 80% let it run unsupervised at least occasionally, compared with 52% of the somewhat confident, 14% of the not very confident, and 3% of those with no confidence at all.

Even so, that trust only goes so far. 63% believe AI can make fair, unbiased layoff decisions, but 37% do not. Most managers say they stay ready to step in: 91% would override an AI layoff recommendation they disagreed with.

1 in 5 Managers Use AI to Target Workers on Sick Leave for Layoffs

Among managers who use AI to help decide layoffs, performance and productivity scores lead the factors AI weighs, at 80%, followed by attendance (57%) and salary or cost (42%).

A smaller share factor in time away from work and personal traits. 31% have AI consider frequent sick days or medical leave, equal to 18% of all managers surveyed. Others include paid time off (23%), age (14%), or tenure (32%).

“Sick days, medical leave, and age stand apart from the factors a layoff usually turns on, because discrimination based on age, disability, or protected medical leave is illegal. A decision that weighs someone’s health or age sits on very different legal ground than one based on their work,” says Julia Toothacre, Chief Career Strategist at ResumeTemplates.com.

2 in 5 Managers Were Never Trained to Use AI Ethically in HR Decisions

Many managers were never taught to use AI responsibly. 38% received no training or guidance on using AI ethically in HR decisions. The tools draw even less scrutiny. 58% of managers cannot confirm their company tested the AI for bias: 23% say it was not, and 35% do not know. And companies are divided on whether to encourage it: 47% do, and 45% do not.

“The biggest risks here are discrimination claims and wrongful-termination claims. When the managers using AI were never trained on it, and the company cannot confirm the tool was tested for bias, there is no way to know what it weighs or whether the decision is defensible. That gap is where those claims start,” Toothacre says.

1 in 5 Managers Let AI Decide If a Job Can Be Automated

Managers do not stop at choosing who to cut. Among those who use AI for layoffs, 34% have it consider whether a person’s job could be done by AI, which is 20% of all managers surveyed. And that is not hypothetical. 44% of managers were asked to evaluate whether AI could replace a role. Of those asked, 75% found it could, and 30% went through with replacing the role. That means 13% of all managers have replaced a person’s job with AI.

Methodology: This survey was commissioned by ResumeTemplates.com and conducted online via Pollfish in July 2026. It surveyed 1,000 U.S. managers with direct reports at companies with 501 or more employees, all of whom use AI at work and use it to help make decisions about their direct reports. To qualify, participants had to be 25 or older, have a household income of at least $75,000, hold an associate degree or higher, hold a managerial role, and currently have direct reports. Results are based on self-reported responses.