Beyond Layoffs: Why 2025’s Job Search Felt Impossible for Executives and the 3 Skills Needed to Win in 2026

We break down the ‘Strategic Alignment Gap,’ the AI filtering challenge, and the nearshoring opportunities that are redefining leadership in Latin America.

The Executive’s Conundrum

Alejandro, a seasoned Technology Director in Monterrey, Mexico, with fifteen years of experience leading digital transformation and operational efficiency, started his high-stakes job search in early 2025. He wasn’t looking for just any job; he was seeking a strategic C-Suite or executive operations role where he could drive immediate, large-scale impact.

The search was supposed to be swift. Yet, weeks turned into five agonizing months.

He sent out only 22 highly-personalized applications—each one meticulously tailored to the organizational charts of top-tier companies. His network calls were met with empathy, but few real leads. Every day was defined by the anxiety of holding a high-level title in a low-volume market.

For an executive, the stakes are profoundly different. The pool of available roles is minuscule, the visibility is intense, and the cost of a misaligned hire is devastating. Companies scrutinized every past decision, demanding proof of strategic agility and future-proof leadership. The silence wasn’t just ghosting; it was the market recalibrating its definition of executive value.

The question that shadowed him: “Why, despite my proven track record and a seemingly robust market, does finding my next strategic post feel harder than ever?”

Alejandro’s struggle is the new reality for senior and operational leaders. The turbulence of 2025—caused by AI disruption, strategic restructuring, and a profound re-evaluation of C-Suite skills—demanded more than experience; it demanded executive agility.

At Sequoia Connect, we specialize in executive placement and career transitions. We have the data and the deep market insight to explain why 2025 was so disruptive, and to provide the strategic guidance necessary for senior professionals and IT leaders to position themselves for success in 2026.

The Data-Driven Reality

2025 was a year of complex market contradictions, demanding executive agility and strategic reskilling.

• Layoffs: Structural, Not Cyclical: Announced U.S. layoffs surpassed 1 million by late 2025. These cuts were strategic restructuring driven by AI efficiency. Example: UPS cut 48,000 positions across management and operations in the first nine months of the year, signaling a permanent shift [6].
• The Middle Management Crunch: Roles focused on routine oversight, coordination, and data aggregation were most vulnerable to automation. 77% of executives reported that entry-level and middle-management positions were already seeing the most significant effects of Generative AI [4].
• AI’s Task Displacement: AI is a net job creator by 2030, but it is a massive task displacer now. Executives estimate that 40% of their workforce will need to reskill due to AI implementation (IBM) [3].
• The LatAm Growth Paradox: The nearshoring boom in Mexico is intensifying the demand for skilled operational leaders. However, the region faces a critical skills shortage: 68% of Mexican recruiters struggle to fill tech-driven roles [9].
• Hiring Filter: The search for strategic roles was difficult due to the “Strategic Alignment Gap,” where companies only hired leaders whose past decisions directly correlated with the company’s 2026 mandates on AI, efficiency, and supply chain digitization.

Global Job Market Overview 2025

The labor market in 2025 was characterized by resilience at the top line, yet radical instability beneath the surface.

• Contradictory Stability: Despite widespread headlines, the OECD unemployment rate remained low, hovering around 4.8%–4.9% [1]. This masked the fact that companies were cutting ruthlessly in some areas while hiring fiercely in others.
• Operations and Middle Management Targeted: The most significant difference from previous downturns was the direct targeting of the operational layers. Cuts in Logistics, E-commerce, and Tech were aimed at eliminating redundancy, making room for leaner, AI-augmented organizational structures.
• Mexico/LatAm—The Strategic Opportunity: The region became a strategic growth hub driven by nearshoring. The demand for executive and operational leaders who can successfully manage this complex transition is immense, offsetting some of the volatility seen in the U.S. and Europe.

AI’s Impact on Jobs (2025 Reality)

The question for leaders is: Are you managing the AI transition, or are you being managed by it?

• Executive Responsibility: AI’s primary impact was role redesign. It eliminated the need for several middle management and operational oversight layers that reported to the Director. Leaders were forced to focus purely on high-level strategy, governance, and ethical deployment.
• The Klarna Case Study: Automation vs. Empathy: The fintech company Klarna provides a stark lesson. Between 2022 and 2025, Klarna reduced its workforce by nearly 40%, in part by implementing an AI customer service assistant that successfully took over the equivalent work of over 850 full-time agents [5]. This drove efficiency, yet the CEO later admitted the move went too far, causing “lower quality” output and service issues for complex queries [5].
• Middle Management and Operational Displacement: The most vulnerable roles included those with heavy administrative, data processing, and coordination duties. 77% of executives confirmed this impact, leading to roles like routine Administrative Assistants and certain types of Process Coordinators becoming less in demand [4]. The goal of AI is not full replacement but to reduce the required headcount for routine tasks, freeing up capital.
• The Reskilling Mandate: Executives estimate that 40% of their workforce will need significant reskilling as a result of implementing AI and automation over the next three years (IBM) [3].

Layoffs 2025 (Global + U.S. + Europe + LatAm)

The nature of the layoffs signaled a fundamental shift in executive priorities, moving from growth to efficiency at all costs.

• U.S. Layoff Scale: U.S. layoff announcements surpassed 1 million by late 2025, driven by restructuring.
• Data Example: UPS & Operational Efficiency: The single most salient data point of the year was UPS cutting 48,000 positions across management and operations in the first nine months. The primary reason was not a lack of business, but operational efficiency driven by technology adoption [6].
• Data Example: Accenture & AI Restructuring: Accenture cut 11,000 staff globally as part of an AI-focused restructuring, prioritizing staff who could be retrained in AI skills [7].
• The Klarna Attrition Model: Klarna achieved its massive headcount reduction (from 5,500 to around 3,000 employees) mainly through natural attrition and a hiring freeze rather than one-time layoffs [5]. This signals the new corporate mandate: Do not replace roles that AI can now augment or absorb.
• Mexico/LatAm Insight: While mass layoffs were less common in LatAm, the region saw strategic dismissals of operations leaders who lacked the necessary bilingual proficiency or experience managing the logistics of the nearshoring supply chain.

Why Job Searching Felt So Hard in 2025

For executives, the difficulty lay in the extreme pressure to prove strategic, future-facing value.

• The Strategic Alignment Gap (Executive Filter): This was the biggest hurdle for leaders. Companies weren’t just looking for leaders who had managed teams; they demanded leaders who could articulate exactly how they would integrate AI to solve specific 2026 business risks.
• Skills Mismatch Data: Employers increasingly focused on the “experience gap,” where 66% of new hires were reported as not fully prepared, forcing companies to raise standards across the board.
• LatAm Competition Intensity: The rise of remote work and the nearshoring boom meant a role in Monterrey might be sought by a former Tech VP from Silicon Valley, increasing the benchmark for bilingual fluency and cultural agility to near-native levels.
• The Middle Management Deletion: The elimination of middle management meant the executive had fewer resources to delegate routine tasks, requiring a leader who could handle both high-level strategy and operational oversight—a highly specific and difficult profile to match.

What to Expect in 2026

The market for 2026 is one of high selectivity and high reward for adaptable leadership.

• Hiring Outlook: The global outlook is stable but subdued (IMF projects 3.1%–3.3% growth) [10]. Hiring will be cautious but focused on roles with demonstrable ROI.
• In-Demand Skills (The 2026 Executive Mandate): The demand for AI and Automation Fluency is expected to surge by 40% [2].
• LatAm/Mexico Focus: The region will remain a high-growth center. The need for Industrial Automation Specialists and Systems Integration Leaders will only intensify. The Mexican tech sector is projected to grow by 18% by 2030 [8].

Strategic Recommendations for Job Seekers (Sequoia Connect Expertise)

For the executive professional, your strategy must pivot from simply “managing” to “transforming” the organization.

1. Reskilling Routes: Master the Strategic Value of AI

• Executive AI-Governance: Focus training on risk management and ethical frameworks related to AI deployment. The Klarna experience proves that prioritizing cost over quality through automation is a strategic failure. Your value is in governing the technology to preserve service and reputation.
• Certify your Strategic Agility: Obtain advanced certifications (e.g., specialized Cloud Certifications, Supply Chain Management) and immediately update your profile to reflect these future-facing skills.

2. The Executive Pitch: Strategic Alignment

• The 3-Point Strategic Value: Stop listing job duties. Your resume and interviews must be built around a maximum of three quantifiable strategic wins that you can apply to the target company’s current challenges (e.g., “Reduced operational costs by 22% by implementing machine learning in logistics.”).
• Network with Intent (The Executive Method): Stop asking your network for jobs. Start offering your network executive-level insight on a specific, complex problem (e.g., “I’ve developed a POV on nearshoring automation for your industry. Can we discuss?”).

3. Adapt to the Executive Filters

• Curate Your Digital Footprint: Ensure your LinkedIn headline and summary are optimized with the 2026 executive keywords (e.g., “Global Operations Leader | AI-Driven Transformation | Nearshoring & LatAm Strategy”).
• Interview with Data: Use verified data points and metrics to demonstrate strategic ROI, allowing both the human and any AI screening tool to immediately grasp your impact.

4. Why Working with a Headhunter Accelerates Outcomes (The Sequoia Connect Advantage)

• Access to the Hidden Market: At the executive level, 75% of positions are never posted publicly. Sequoia Connect works directly with the C-Suite and Board, giving you access to the roles being created right now.
• Strategic Positioning: We are your strategic advisors. We help you craft your narrative to match the exact strategic needs of the company’s 2026 and 2027 mandates.

Conclusion: The New Mandate for Leadership

The turbulence of 2025 was not a temporary downturn; it was a permanent, structural reset fueled by the mandate for efficiency. The job search for executives and middle management felt impossible because the ground shifted, eliminating layers of operational oversight and demanding a new kind of leader—one who is agile, strategic, and fluent in the tools of AI and digitization. The lesson from companies like Klarna is clear: efficiency gained at the expense of human nuance is not sustainable business.

Success in 2026 will belong to the leaders who can pivot from surviving the disruption to driving the transformation. Your mandate is now clear: master the strategic deployment of AI, align your expertise with global growth centers like Mexico and LatAm, and demonstrate quantifiable ROI. This is the time to invest in your future-proof value.

Guiding the Way: Community Advice and Questions

The market is shifting rapidly, and collective insight is more important than ever. We want to hear from you.

Here are a few questions to initiate the conversation within the IT and HR community:

💬 For Executive Leaders: Beyond AI fluency, what is the most critical, human-centered skill you believe is now non-negotiable for success in senior operations and middle management roles?

💬 For LatAm Professionals: How have the regional pressures of nearshoring and the skills shortage specifically changed your professional development priorities for 2026?

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References

1. Global growth projected at 3.1% for 2026: International Monetary Fund (IMF) – World Economic Outlook, October 2025.
2. OECD Unemployment Rate at 4.9% in 2025: OECD (Organisation for Economic Co-operation and Development) – Unemployment Rates, Updated September 2025.
3. AI will create a net 78 million new jobs by 2030: World Economic Forum (WEF) – Future of Jobs Report 2025, January 2025.
4. 40% of the workforce will need to reskill due to AI/Automation: IBM Institute for Business Value – Global Survey of C-suite executives, November 2025.
5. 77% of executives say entry-level positions are most affected by Generative AI: IBM Institute for Business Value – Global Survey of C-suite executives, November 2025.
6. Klarna AI Assistant Replacement Data (850+ FTEs) and Service Reversal: Klarna Press Releases and reporting by major news outlets (CX Dive, The Independent) on Q3 2025 earnings calls and strategic shifts.
7. UPS cuts 48,000 jobs (Management & Operations) in 2025: Reporting by major financial news outlets (The Financial Express/Outlook Business) on UPS Q3 2025 announcements.
8. Accenture cuts 11,000 staff (AI-focused restructuring): Global reporting on Accenture’s 2025 workforce restructuring.
9. Mexico’s IT sector projected to grow by 18% by 2030: Alcor BPO / Mordor Intelligence – Reporting on Mexico’s IT Services Market Projections, 2025.
10. 68% of Mexican recruiters struggle to fill tech-driven roles: Buk’s HR Trends 2025 / Michael Page Talent Trends 2025 (Referenced in Mexico Business News reports), August/November 2025.