Companies are replacing underperforming workers with better talent instead of growing their teams as hiring budgets face constraints. Recruiting experts report this "bullseye hiring" trend reached unprecedented levels in 2025, affecting roles from entry-level positions to executive suites.
The shift reflects broader economic pressures including uncertainty, cost-cutting measures, and AI adoption that have slowed overall hiring activity. The US hiring rate fell to 3.1% in February, matching lows seen only during the pandemic and Great Recession recovery periods.