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AI poised to slash corporate workforces in two years
25 May
Summary
- Over 99% of executives expect AI to reduce headcount within two years.
- 98% of executives are planning organizational design changes soon.
- Employees may leave jobs if they feel disadvantaged by AI.
A recent survey indicates that corporate executives are bracing for substantial workforce reductions driven by artificial intelligence in the coming two years. Over 99 percent of surveyed executives anticipate AI will result in at least some job cuts, with 98 percent planning organizational design shifts. C-suite leaders are particularly focused on integrating AI and automation.
This projected shift has raised employee concerns, as over a third of workers stated they would consider leaving their jobs if they felt disadvantaged by AI integration. While some prominent figures, such as Goldman Sachs CEO David Solomon, have characterized the 'AI job apocalypse' as an overblown concern, the trend toward AI-driven workforce changes is evident.
Recent layoffs linked to AI have already occurred across several major tech companies. A Harvard Business School study suggests generative AI may temporarily increase demand in 'augmentation-prone' roles, with current reductions primarily impacting the finance and tech sectors. However, only a third of executives believe human and machine capabilities can be effectively merged within large workforces.
