As artificial intelligence begins to take over more work inside workplaces, OpenAI CEO Sam Altman believes companies need to rethink how quickly they add new employees. Speaking at a live-stream town hall earlier this week, Altman said AI has already changed how OpenAI plans its workforce, and it’s likely to impact hiring decisions across industries, Business Insider reports.

The discussion, which was primarily aimed at developers, included a question about whether AI has affected OpenAI’s interview and hiring process. Altman’s response suggests the company isn’t planning to replace humans or stop hiring altogether. Instead, the focus is on growing at a much more measured pace than before.

According to Altman, AI tools now allow smaller teams to handle work that previously required many more people. Because of this, OpenAI no longer feels the need to rapidly expand its workforce. “We plan to slow our progress dramatically because we think we will be able to do a lot more with fewer people,” he said during the session.

While the comments reflect OpenAI’s internal strategy, Altman also used the moment to share a warning for other companies navigating the AI ​​transition. He argued that hiring aggressively in an uncertain environment could have adverse effects, especially when AI capabilities improve faster than expected.

He said, “I think what we shouldn’t do, and I hope other companies don’t do the same, is to hire overly aggressively, then suddenly realize that AI can do a lot of the work, and you need fewer people.” Altman said such situations often lead to difficult and uncomfortable conversations later, including layoffs.

Altman believes that instead of oscillating between rapid expansion and sudden cutbacks, companies should take a slow and steady approach. “So I think the right approach for us would be to continue hiring more slowly but surely,” he said. He underlined that human talent is still important, but it needs to be coupled with clear long-term thinking.

Altman’s comments come at a time when the US job market is already showing signs of stress. The pace of hiring has slowed sharply over the past year, a phase many analysts have come to call the “Great Freeze.” Data from the US Bureau of Labor Statistics shows that the unemployment rate in November 2025 reached its highest level since 2021. Also, job opportunities have declined significantly, falling 37 percent from their peak in 2022.

The change is also visible in how job opportunities compare to the number of people looking for work. In 2022, there were approximately two jobs open for every unemployed worker in the US. By September 2025, this gap had narrowed to one job opening per unemployed person, indicating a much tighter labor market. Long-term unemployment has also become common, with people out of work for at least 27 weeks now accounting for nearly a quarter of all unemployed Americans.

Young workers have been particularly hard hit by the recession. Unemployment among Americans ages 20 to 24 reached 9.2 percent in August and September, according to U.S. Census Bureau data. This is the highest level recorded since the period following the pandemic-induced recession, making it especially challenging for new graduates and early-career professionals to find stable jobs.

Against this backdrop, Altman’s comments illustrate how AI is adding another layer of complexity to an already delicate hiring environment. Companies are increasingly discovering that AI tools can automate tasks, speed up workflows, and reduce the need for large teams. While this can improve efficiency, it also forces leaders to think more carefully about when hiring will actually make sense.