Layoffs Fear: 99% of Executives Expect AI-Driven Job Cuts in 2 Years
A new global survey by Mercer reveals that over 99 percent of executives expect artificial intelligence to cause workforce reductions within the next two years. While corporate leaders plan extensive automation and restructuring, employees express growing anxiety over job security and future workplace roles.
Corporate leaders are preparing to downsize their workforces over the next two years as artificial intelligence integration accelerates across industries. A new global study indicates that top-level management is heavily focused on leveraging automation to restructure business operations and reduce overall staffing levels.
As per a report by Mashable, findings from a global survey conducted by consulting firm Mercer reveal that more than 99 percent of surveyed executives expect artificial intelligence to drive headcount reductions within the next two years. The comprehensive study gathered insights from approximately 12,000 respondents, encompassing upper-level management, human resources professionals, and general employees. Monday.com Layoffs: Software Firm Cuts 20% of Workforce in Major AI Restructuring.
Corporate Restructuring and Executive Focus
The survey highlights a profound strategic shift in corporate boardrooms, where 98 percent of executives confirmed they are actively planning organisational design changes to incorporate automation. C-suite leaders are placing primary emphasis on workflow transformation, viewing artificial intelligence tools as primary drivers for efficiency and cost reduction.
However, aligning human labor with machine capabilities remains a significant challenge. Only one-third of executives surveyed expressed confidence that organizations can effectively combine human and machine capabilities at scale. This disconnect has fueled growing anxiety across workforces regarding long-term job security and career stability.
Differing Views on Labor Market Disruption
Despite widespread plans for automated downsizing, industry opinions remain divided regarding the broader economic impact. Proponents of artificial intelligence adoption argue that technological disruptions historically stimulate the creation of new employment sectors. For instance, recent commentary from financial executives suggests that labor markets possess a strong historical capacity to adapt to major technological shifts. Amazon Layoffs: AGI Team Hit With Job Cuts as AI Strategy Shifts..
At the same time, employee sentiment reflects mounting apprehension. More than a third of surveyed workers indicated they would consider leaving their organizations if they felt disadvantaged or unsupported during the transition to AI-integrated operations. As companies push forward with automation, balancing technological efficiency with workforce retention remains a critical challenge for corporate leadership.
(The above story first appeared on LatestLY on Jul 26, 2026 09:27 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).