99% of CEOs expect AI-driven job cuts within 2 years
Nearly all corporate leaders anticipate workforce reductions as companies accelerate AI adoption. A global survey by Mercer found that more than 99 percent of executives believe AI will lead to at least some reduction in employee headcount within the next two years.
The study surveyed around 12,000 people worldwide, including senior executives, HR professionals, and employees. Nearly 98 percent of executives said they are planning organizational changes over the next two years, with many looking at ways to integrate AI and automation into their operations.
Job losses already underway
Several major technology companies have already linked job cuts to AI investments. Amazon, Atlassian, Block, Fiverr, Pinterest, and Snap have announced layoffs connected to their AI strategies. Industry estimates suggest around 50,000 jobs were affected by AI-related workforce reductions in 2025 alone.
The case for optimism
Some business leaders argue that fears of an AI-driven employment crisis may be overstated. Goldman Sachs CEO David Solomon said that technological disruptions have historically created new opportunities and jobs, even as older roles disappeared.
Research from Harvard Business School supports a more nuanced view. A recent study found that generative AI is increasing demand for workers in roles where humans and AI can collaborate effectively. The most significant workforce reductions are currently concentrated in sectors such as technology and finance.
The HR challenge: Upskilling and retention
Only about one-third of executives believe companies have figured out how to successfully combine human and machine capabilities at scale, according to Mercer's survey. This gap presents a critical challenge for HR teams managing organizational change.
Employee concerns remain high. More than one-third of employees surveyed said they would consider leaving their jobs if they felt disadvantaged compared with colleagues who were better equipped to use AI tools.
According to a recent Pew Research Center survey, 21 percent of Americans say AI is already used in some part of their work. Younger professionals and recent graduates are experiencing the effects of AI integration more directly as companies transform how work gets done.
For HR leaders, the findings underscore the need for clear workforce planning strategies and skills development programs. AI Learning Path for CHROs offers guidance on integrating AI strategy with talent management. Additional resources on AI for Human Resources cover recruitment, talent management, and workforce planning in an AI-driven environment.
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