Why Companies Are Posting Jobs While Laying People Off

Key Concepts

• Ghost Jobs: Job postings that companies have no real intention of filling.
• Restructuring: The process of eliminating specific roles or divisions while simultaneously hiring for others.
• Phantom Jobs: A term used to describe the discrepancy between reported job openings and actual hires.
• Applicant Tracking System (ATS): Software used by companies to manage the recruitment process.
• Offshoring: Moving roles to lower-cost markets or countries to reduce labor expenses.
• Market Signaling: Using job postings to project growth and stability to shareholders and investors.

1. The Reality of the Current Job Market

The job market is currently experiencing a phenomenon where companies conduct mass layoffs while simultaneously posting new job openings. According to data from the ATS provider Greenhouse and the Bureau of Labor Statistics, between 18% and 40% of current U.S. job postings may be "ghost jobs." In a notable example from June of last year, there were 4.7 million job postings against only 5.2 million actual hires, suggesting a significant number of "phantom jobs."

A survey of hiring managers revealed that 62% post fake jobs to keep current employees anxious and compliant, making them feel replaceable. This strategy is often used to enforce return-to-office mandates.

2. Four Reasons for Simultaneous Layoffs and Hiring

Brian, a career strategist and former corporate recruiter, identifies four primary drivers for this contradictory behavior:

• Strategic Restructuring: Companies rarely cut uniformly. They often eliminate specific management layers or divisions while simultaneously investing in new areas (e.g., Amazon cutting corporate roles while investing $80 billion in AI infrastructure).
• Cost Cutting: Companies often eliminate expensive, senior-level roles and replace them with two cheaper, lower-level positions or move the work to lower-cost regions/countries. Research indicates that 30% of companies with recent layoffs replaced workers with offshore employees, sometimes forcing the departing employees to train their replacements.
• Investor Signaling: Companies use active career pages to project an image of growth and strength to shareholders. Bloomberg data shows that tech company stocks rose an average of 5.6% in the month following a layoff announcement, as investors reward cost-cutting measures.
• Human Error/Correction: Companies sometimes realize they cut essential staff due to pressure from boards or private equity firms. They may quietly rehire for these roles, often under different titles and at lower salaries, to "reset" the cost structure.

3. Strategic Adjustments for Job Seekers

To navigate this "rigged" system, job seekers must change their approach:

• Decouple from Job Boards: Relying solely on online applications is ineffective because many roles are filled via internal referrals or networking before they are ever posted. Job postings are often published only for legal or HR compliance.
• Analyze Market Intelligence: Treat layoffs and hiring patterns as data. If a company is cutting customer service roles but hiring AI engineers, it signals the company's future direction. Align your skills with these growth areas.
• Adjust Salary Expectations: Be aware that salary bands for re-posted roles are often "reset" downward. When negotiating, use independent market data (e.g., Glassdoor) rather than relying on the company’s initial offer, and emphasize the specific value you bring to justify a higher salary.
• Prioritize Networking: Focus on direct outreach and building relationships. Recruiters view job postings as a "last resort" and prioritize candidates who come through trusted networks.

4. Notable Quotes

• "62% [of hiring managers] said they do it [post fake jobs] to make their current employees feel replaceable, to keep them on their toes, to keep them anxious, to keep them compliant."
• "Half of all the layoffs that companies are attributing to AI are going to result in those workers being quietly rehired offshore or at significantly lower salaries." — Forester Analysts
• "The real market... is disproportionately filled through relationships, referrals, direct outreach before a posting even goes live."

5. Synthesis and Conclusion

The modern job market is characterized by a disconnect between public job postings and actual hiring needs. Companies utilize "ghost jobs" for internal control, investor relations, and cost-cutting maneuvers. To succeed, job seekers must stop viewing job boards as the primary path to employment. Instead, they should focus on targeted networking, market intelligence analysis, and strategic positioning to ensure they are the candidates being considered before a role is ever made public. Understanding these mechanics allows candidates to reclaim control and avoid wasting time on positions that do not exist.