Sam Altman, CEO of OpenAI, revealed during a live-streamed town hall event aimed at developers that the company is planning to "dramatically slow down" its pace of hiring. The comments come amid growing concerns about AI’s impact on the workforce and broader economic trends showing a significant slowdown in job creation across the United States. Altman emphasized that while OpenAI is not implementing a hiring freeze and remains committed to hiring, the company is deliberately reducing the speed of its expansion. "We are planning to dramatically slow down how quickly we grow because we think we'll be able to do so much more with fewer people," he said, responding to a question about how AI is affecting OpenAI’s recruitment process. He warned against the risks of aggressive hiring followed by sudden workforce reductions once AI takes over more tasks. "What I think we shouldn't do, and what I hope other companies won't do either, is hire super aggressively, then realize all of a sudden AI can do a lot of stuff, and you need fewer people, and have to have some sort of very uncomfortable conversation," Altman said. Instead, he described a more sustainable approach: hiring more slowly but continuing to bring in talent. This strategy reflects a broader shift in how tech companies are rethinking workforce planning in the age of generative AI. The remarks come at a time when the U.S. labor market is showing signs of cooling. According to the Bureau of Labor Statistics, the unemployment rate rose to its highest level since 2021 in November 2025. Job openings have declined by 37% from their peak in 2022. The ratio of job openings to unemployed workers dropped from about two to one in 2022 to just one by September 2025. Additionally, long-term unemployment has become more prevalent. Workers who have been jobless for 27 weeks or more now make up approximately a quarter of the unemployed population. Young workers have been disproportionately affected. Data from the U.S. Census Bureau shows that the unemployment rate for Americans aged 20 to 24 reached 9.2% in August and September—its highest level since the pandemic recovery began. These trends underscore the challenges facing new entrants to the job market amid a shifting economy driven by automation and AI.