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That boilerplate response is a classic red flag. When leadership starts using phrases like 're-evaluating resource allocation,' it usually means they are trying to keep people locked in their current silos until they decide who stays and who goes. I've been through this before, and it rarely ends with the internal transfer window opening back up. If you are already feeling uneasy, start polishing your resume now. It is much better to have an exit strategy ready than to be caught off guard if they decide to execute a headcount reduction next quarter.
I wouldn't panic just yet, but keep your eyes wide open. Internal mobility is often the first thing to get hit when leadership wants to maintain strict control over team sizing. It’s possible that your current manager or HR is just trying to protect their own department's numbers for the upcoming performance cycle. However, if you are being stonewalled, it’s a sign that the bureaucracy is tightening up. Quietly reach out to a few contacts in other departments to see if they are actually hiring or if the freeze is company-wide. Use this time to gather information instead of worrying about the rumors.