It was meant to be a pause, not a reckoning. A seasoned chief HR officer from a global organisation recently confided that returning to the market after stepping back from a high level role had shaken him. “It’s a shock,” he told me. “I’ve sat on the other side of that table for years. But now? I’m rethinking everything about how we hire senior leaders. When I’m back in a CHRO role I’ll be questioning my recruiters much more.”
His story isn’t unique. “I’ve been ghosted by a couple of businesses,” says another CPO in transition. “In this day and age that’s really pretty poor.”
Across the UK, US and elsewhere senior HR leaders are quietly discovering that experience no longer guarantees opportunity. Recruiters are silent. Roles are restructured. Titles are downgraded. For many, what was once a well-defined career path has fractured into something uncertain and uneven.
“You’re aware that a lot of other strong candidates are in the market…”
One CPO tells me: “The biggest surprise is just how many senior HR people are out of work. Companies still recognise the need for the function but they seem comfortable filling roles at ‘head of’ or manager level, sometimes with operations stepping in to cover the strategic side.”
And those roles that are out there? Increasingly narrow as organisations seek people from the same sector. “The only ones where I’ve got beyond initial stages are ones that match exactly my background. Anything that deviates, even slightly, just goes nowhere.”
Even Reddit’s HR communities are sounding the alarm. “HR field dying,” says one post while another says: “This market is a hot mess. I’ve worked in HR for over 10 years. I’ve never seen this many layoffs.” One laid-off jobseeker reported over 700 applications and six final interviews, all ending with the same line: “You’re a great fit but someone else has five to 10 years more experience.”
What recruiters say is happening
While this lived experience feels stark recruiters don’t dispute it. They just describe it differently.
“Where companies are looking to cut costs we typically see that the HR function is one of the first affected, as companies believe they can run with the bare bones of an HR team,” says Stephanie White, director - head of product, technology, implementation & professional services at global fintech recruitment agency EC1 Partners.
At the same time many are revisiting the profile they want in HR leadership. “So far in 2025 we have seen a demand for chief people officer/head of people roles – either replacement hires or newly created roles within smaller companies – as executive teams recognise the need for a robust people strategy,” White continues. “These appear to be replacing traditional heads of HR and key skills companies are looking for include change transformation and upwards coaching abilities to the leadership team.”
“There is a growing emphasis on truly aligning HR strategy with business strategy at the highest levels,” agrees Matt Wallis, senior director of people and culture practice at UK recruitment firm BIE. “CEOs and boards increasingly expect CHROs to play a direct role in driving business strategy rather than merely supporting it. This shift has made HR leadership a more strategic and commercially focused function and demands HR leaders to double down on their need ensure any initiatives they drive need to have demonstrable ROI.”
The paradox: more demand, fewer doors open
The numbers support both views. Russell Reynolds reported a 35% surge in CHRO turnover in Q4 2024. But 69% of those hires were internal and 62% were first-timers. So while the function is changing hands, the opportunities for experienced, external HR leaders are narrowing.
Some of this reflects cost control. Some is cultural risk-aversion. Internal hires are cheaper, more familiar and easier to onboard. But some reflects a more fundamental shift: many boards no longer see tenure or sector expertise as defining assets.
“An increasing trend is that VC- and private equity-backed organisations are prioritising HR executives with a demonstrable track record of leading exits,” says Wallis. “While understandable, this limits the development of step-up CPO or CHRO candidates.”
White sees a related dynamic: “While roles are not necessarily becoming harder to secure, the competition is greater (more candidates applying per role) and you have to really stand out and differentiate yourself.
A change in language and priorities
“The sands have shifted,” one HRD told me. “A lot of what was once core – wellbeing, engagement – is now seen as a ‘nice to have’. Businesses are leaning into commercial efficiency, not people experience.”
Nowhere is this more visible than in interviews. “I talk about numbers, KPIs, hours and headcount more than I talk about engagement,” he says. “Businesses want a safe pair of hands.”
Even roles with CPO titles are more operational than strategic. “I’m in a four-stage process – CEO, exec team, psychometrics, non-exec interview. That’s fine if it’s a true C-suite role. But this one isn’t,” says one CPO.
Specialisms under pressure and DEI takes a hit
Behind the headline shifts, specialist HR roles, especially in talent acquisition and diversity, equity and inclusion (DEI) have borne the brunt of budget cuts. Across 2023, mid-level managers made up 31.5% of layoffs and executive exits more than doubled. HR-specific layoffs hit recruiters hardest, with some tech companies cutting up to 50% of recruiting staff.
In DEI the retreat is sharper. DEI roles saw a 33% churn rate and several high-profile companies, including Zoom, Microsoft and Tesla, disbanded DEI teams altogether. New postings dropped another 8% in early 2024.
“The backlash to DEI has taken out a lot of high-level roles that fell under the HR umbrella,” says Hayden Cohen, CEO of Hire with Near, which helps US firms access remote HR talent from Latin America.
These cuts reflect not just budget concerns but political and reputational caution. As scrutiny of so-called ‘woke’ initiatives grows in some regions, companies are pulling back from people programmes that once symbolised their progressive values.
Automation: filtering or threat?
Layered over this is the growing influence of artificial intelligence (AI) in reshaping HR delivery. From onboarding to policy, AI tools are automating core HR tasks. IBM paused hiring for 7,800 back-office roles in 2023, predicting 30% automation of such jobs within five years. Microsoft’s CPO reported saving 20,000 hours in one year with AI-led HR tools.
“Automation and AI can handle onboarding and benefits admin far more efficiently,” says Cohen. “Remote offices also reduce the need for HR to manage in-person dynamics.”
Yet for senior professionals, automation may be less a threat than a signal: those who can lead its governance, adoption and ethics will rise. Those stuck in process-heavy roles may not.
The rise of fractional and interim models
One of the clearest shifts is in how companies hire senior HR leaders: fractional and interim roles are on the rise.
“Companies are hesitant to commit to senior people leaders full-time,” says Dr Kyle Elliott, career coach and advisor to HR leaders. “Boards are afraid of getting the hire wrong. That’s led to more interim contracts, fewer permanent roles and much longer processes.”
White agrees: “There’s a trend toward fixed-term and interim hiring. It gives flexibility. Companies can change strategy without being locked in. There’s a definite ‘try before you buy’ mentality.”
These roles offer agility but they also reinforce insecurity. Senior HR professionals now need to position themselves not just as leaders but as specialists who can land fast, drive transformation and deliver value in ambiguous contexts.
The new CHRO profile: external, commercial and fluid
“Senior HR roles are becoming broader than ever,” says Wallis. “In some cases CHROs are also being asked to take on communications and ESG. Boards want external-facing people leaders who understand sustainability, governance and market-facing culture.”
But in parallel, many firms are replacing senior HR leaders with more junior hires. As White puts it: “We’re seeing some senior HR roles being replaced with a more intermediate level hire.”
This dual reality – broader remits at the top but consolidation underneath – makes one thing clear: there is no typical path anymore.
A market not built for the cautious
So where does this leave senior HR leaders? It leaves them in a market where the rules have changed. Where ‘fit’ is defined narrowly. Where titles don’t always match expectations. And where being brilliant is no longer enough. You have to show you’re business-critical.
It’s not the end of the CHRO role. But it may be the end of the ladder.
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