A growing paradox is reshaping the 2026 workforce: strong performers are still losing their jobs. According to a January 2026 HR Dive survey, nearly 50 percent of companies expect layoffs in Q1, even as most plan to hire selectively for growth roles, exposing a market where competence alone no longer protects careers. Strategic growth advisor and ‘The CodeBreaker Mindset‘ author Chitra Nawbatt warns this moment marks the rise of a “competence trap,” where professionals optimize output while organizations quietly reprice value around speed, adaptability, and influence. The result is a workforce operating by outdated rules in a system that has already moved on. Below are more of her insights.
How to Stay Relevant in 2026
Across industries, a growing number of professionals share the same uneasy feeling: despite strong performance and proven competence, job security feels increasingly fragile. That anxiety is not imagined. The rules of work are shifting in plain sight, and the changes are cutting through roles that once felt insulated from disruption.
Layoffs
Layoffs are no longer limited to underperformers or redundant teams. They are appearing in the middle of organizational charts, within core functions, and among employees who were recently labeled essential. According to strategic growth advisor Chitra Nawbatt, author of “The CodeBreaker Mindset: The Unwritten Rules for Success,” this signals a deeper structural change in how companies define value.
“Competence used to buy you time,” Nawbatt explains. “In 2026, competence is table stakes. The market is rewarding a different set of behaviors, and many professionals are still playing by the old rules.”
This shift is often mischaracterized as a simple story about machines replacing people. In reality, the more immediate force is organizational redesign. Companies are flattening decision layers, reducing bureaucracy, and repricing labor around speed and adaptability.
Reuters already reported that Amazon was preparing additional corporate job cuts as part of an effort to streamline its structure and remove management layers, even as it continues to invest selectively in priority roles tied to long term strategy.
“The narrative is convenient,” says Nawbatt. “Blaming technology masks the harder truth. Many organizations are still figuring out how to operate efficiently in a volatile environment, and people get caught in that recalibration.”
Data shows a contradiction
Data from HR leaders underscores the contradiction. A January 2026 survey cited by HR Dive found that nearly half of companies expect layoffs will likely occur in the first quarter, while most also plan to hire selectively for roles tied to growth initiatives.
This dual track of hiring and cutting reveals why performance reviews alone no longer predict job security. The system itself is changing faster than individual output can keep up.
Rise of the CodeBreaker
Nawbatt describes the professionals who thrive in this environment as CodeBreakers. The term does not refer to rule breakers for their own sake, but to people who understand that success is governed by both written rules and unwritten ones.
“Written rules tell you how things are supposed to work,” she says. “Unwritten rules tell you how decisions actually get made when pressure hits. In periods of reorganization, the unwritten rules are what determine who stays and who goes.”
Based on her work advising leaders and teams across multiple industries, Nawbatt outlines five shifts that separate those who remain relevant from those who become interchangeable.
1. Stop optimizing and start reading patterns
Efficiency can feel reassuring in unstable times, but it can also be misleading. Nawbatt emphasizes that productivity without direction often leads professionals deeper into roles that are quietly being deprioritized.
“The winners are not the busiest people,” she notes. “They are the ones who can see where budgets are tightening, where automation is accelerating, and where their work is becoming easier to replace.”
2. Treat unwritten rules as the real operating system
Most professionals are trained to follow job descriptions and formal processes. During restructurings, however, informal dynamics take over. Who is protected, which narratives leadership repeats, and how risk is managed become far more important than stated policies.
“When written and unwritten rules diverge,” Nawbatt says, “the people who notice early have options. Everyone else is reacting.”
3. Build a nonlinear value stack
The traditional career ladder assumed stability and long time horizons. In today’s environment, resilience comes from a portfolio of relevance that spans skills, relationships, and credibility across contexts.
“You are not competing for a seat anymore,” Nawbatt explains. “You are trying to become a node in an ecosystem. The goal is to create value that travels with you when structures change.”
4. Focus on information quality, not quantity
Modern organizations are saturated with dashboards, metrics, and opinions. According to Nawbatt, the ability to distinguish data driven insight from perception driven or manipulation driven narratives is becoming a defining leadership skill.
“Clarity is power,” she says. “The person who can say what is true, what is assumed, and what is being spun becomes indispensable when decisions must be made under uncertainty.”
5. Replace ladders with loops
Career progress in 2026 is less linear and more iterative. Learning, testing, building proof, and compounding impact now matter more than waiting for titles or recognition.
“High performers often get stuck waiting to be noticed,” Nawbatt observes. “CodeBreakers build evidence. They create work that can be demonstrated, taught, and scaled.”
A Market That No Longer Rewards Comfort
If this moment feels uncomfortable, that discomfort may be the point. The market has stopped rewarding stability for its own sake. The professionals most likely to thrive are those who confront change early and adjust with intention.
AI will continue to improve. Organizations will continue to thin. The defining question is not whether people can outwork machines, but whether they can outgrow outdated playbooks.
As Nawbatt puts it, “The CodeBreaker mindset is not about fear. It is about clarity. It is about understanding how systems really work and moving with discernment when those systems shift.”
Sources
- https://www.reuters.com/business/world-at-work/amazon-plans-thousands-more-corporate-job-cuts-next-week-sources-say-2026-01-22/
- https://www.hrdive.com/news/companies-hiring-and-firing-2026/809286/
For the Silo, Devyn Kerns.