A new survey from ResumeBuilder.com of 866 U.S. business leaders finds that 54% of companies have or will reduce employee compensation to free up capital for AI spending in 2026.
The findings point to a workforce bearing the direct financial cost of corporate AI ambitions, with reductions spanning bonuses, raises, equity, benefits, and base salaries.
According to the business leaders surveyed, the pressure is unlikely to ease, as the vast majority expect further AI investment at the expense of employees.
6 in 10 Companies Say They Have Reduced Compensation To Fund AI Investments
By the end of the year, more than half of companies (58%) will have cut employee compensation (54%) or laid off workers (26%) to help fund AI investments.
The types of compensation affected by cuts include:
- Bonuses (61%)
- Equity or stock awards (60%)
- Raises (59%)
- Benefits (53%)
- Base salaries (43%)
“Companies are making a clear calculation: AI investment is the priority, and employee compensation is where the budget will come from. This is not just layoffs. Bonuses, raises, equity, benefits, and base pay are all being cut simultaneously, across industries,” says ResumeBuilder’s Chief Career Advisor Stacie Haller.
25% Will Give “Peanut Butter Raises” Instead of Performance-Based Increases in 2026
Many companies that are cutting compensation or using layoffs to fund AI are planning to take a flat, across-the-board approach to raises in 2026, sometimes referred to as “peanut butter raises,” rather than tying compensation to individual performance.
How companies plan to approach employee raises in 2026:
- 71% will give performance-based raises tied to individual results
- 14% will give uniform raises applied across the board, regardless of performance
- 11% will give below-inflation raises across the board
- 4% will give no raises at all
“Uniform raises can seem equitable, but they sever the connection between performance and reward. High performers notice when their output is valued the same as everyone else’s, and they have options. Companies that flatten compensation this way risk losing the people they can least afford to and end up retaining low performers who had nowhere else to go,” says Haller.
57% Are Afraid of Falling Behind Without Significant AI Investments
Fear of competition is a primary driver behind companies cutting compensation and using layoffs to fund AI investments.
Why companies say they have reduced compensation to fund AI:
- 75% say AI will give them a competitive advantage
- 74% believe AI will lead to revenue growth
- 57% say they risk falling behind competitors without significant AI investment
- 56% cite board or investor pressure to adopt AI
“There is real pressure, both internal and external, driving these decisions,” says Haller. “Boards and investors are asking hard questions about AI strategy, and leaders feel they cannot afford to sit on the sidelines. The risk of falling behind is being treated as more urgent than the risk of losing talent. That is a short-sighted trade-off. When the job market shifts back in employees’ favor, these companies will find it much harder to attract and retain the people they need.”
9 in 10 Companies Are Comfortable Sacrificing Employees To Fund AI
Among companies already cutting compensation or conducting layoffs to fund AI, the willingness to absorb further human costs is striking. More specifically:
- 94% expect to reduce headcount as AI takes over more functions.
- 92% say AI investment is a higher priority than employee satisfaction right now.
- 94% are willing to accept higher turnover to fund AI growth.
- 88% say the weak job market makes it easier to reduce compensation without losing talent.
“This is not reluctant belt-tightening, and these leaders are not apologetic about the choices they are making. They see AI investment as existential and are willing to absorb turnover and employee dissatisfaction as acceptable costs. The weak job market is giving them confidence that they can do this without serious consequences. But the job market will not stay weak forever. Job seekers are already wary of employers using AI to eliminate roles, and organizations that have cut compensation to fund those investments may find that history follows them when workers have choices again,” says Haller.
Methodology
This survey was commissioned by ResumeBuilder.com and conducted online in March 2026. It surveyed 866 U.S. business leaders. Respondents met specific demographic criteria: employed full-time, ages 30 and older, holding a bachelor’s or graduate degree, and with a household income of $100,000 or more. Respondents held roles including C-suite executives, VPs, directors, and senior managers. Of the 866 surveyed, 500 completed the full survey, having indicated their company has reduced or eliminated employee compensation or conducted layoffs to fund AI investments.
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