CSX, Alphabet and Others Plan to Resume Hiring After Slowdown Amid Economic Uncertainty and AI Concerns

Large US companies indicate they may still need more employees. Over the past few months, major employers have treated hiring as an expensive "last resort." Now, a shift is occurring across industries. From railroad giant CSX to Google parent Alphabet, companies recently told investors they plan to use hiring to achieve growth targets or seize emerging technology opportunities.

This move toward at least modestly expanding headcount contrasts sharply with the prevailing corporate narrative during much of the AI era. For a long time, large companies broadly slowed hiring due to economic uncertainty or the belief that AI could handle more tasks. But some executives say AI's costs and limitations now require adding workers. Others want to rehire after layoffs.

Booz Allen Hamilton, a US government contractor, cut thousands of jobs last year after the Trump administration reduced federal contracts and demanded cost justification. As of June 30, the company had about 30,900 employees, down 7.5% from a year earlier. But it now sees strong demand for its services, especially in national security roles requiring security clearances. Chief Operating Officer Kristin Martin Anderson told investors they actually need to accelerate hiring slightly and are now addressing that.

For most of the past 18 months, large employers were convinced that fewer employees meant faster growth. US public companies have been shrinking white-collar workforces. Now, layoffs are decreasing. According to federal data, the number of Americans filing for unemployment benefits for the first time in the most recent week hit the lowest level since 1969.

Many companies that use the human resources platform Lattice have now resumed hiring for multiple roles, especially entry-level positions. Lattice CEO Sarah Franklin said the shift partly reflects companies reassessing what AI can actually do. Many had stopped hiring junior staff because they thought AI agents could fill gaps, but later realized human workers are still essential and need to work alongside AI.

The hiring rebound is not limited to white-collar jobs. Tool maker Snap-on said it plans to add employees to expand its business. Railroad CSX said its train and engine service department will see a "modest increase" in the coming months to help meet higher demand, even as it uses technology to offset attrition in other departments. The transport company noted its total headcount remains below a year ago.

Few companies plan large-scale hiring, and businesses are clear they are looking for specific talent. Software company ServiceNow plans to hire more "front-line sales executives with sales quotas and go-to-market skills" to capture growth opportunities in areas like cybersecurity.