99% of CEOs Expect AI Layoffs Within 2 Years as Only 32% Trust Human-Machine Mix
Updated
Updated · Gizmodo · May 24
99% of CEOs Expect AI Layoffs Within 2 Years as Only 32% Trust Human-Machine Mix
2 articles · Updated · Gizmodo · May 24
Mercer’s Global Talent Trends report found 99% of CEOs are preparing for AI-driven layoffs within two years, making workforce cuts a near-universal expectation among top executives.
Only 32% of those executives said their workforce can optimally combine human and machine capabilities, even as most see redesigning work around automation as AI’s biggest return-on-investment opportunity.
Early-career roles are expected to bear much of the headcount reduction because AI is seen as strongest at automating simpler entry-level tasks that once served as training grounds.
Workers are already showing strain: 44% reported thriving at work in 2026, down from 66% in 2024, with anxiety over AI displacement increasingly cited as a cause.
That pressure is feeding a broader backlash, from a weak job market for 22-to-27-year-olds to rising skepticism about whether AI is delivering productivity gains that justify the disruption.
Is 'AI' the real reason for mass layoffs, or a convenient excuse for corporate cost-cutting?
As AI eliminates entry-level roles, what does the future of work look like for the next generation?
Beyond job losses, is AI creating a massive, unmeasured productivity boom inside private households?
AI-Driven Layoffs, Workforce Transformation, and the "AI-Washing" Debate: Navigating the Human, Corporate, and Policy Impacts in 2026
Overview
As of Q2 2026, rapid integration of Artificial Intelligence is reshaping the business landscape, driven by CEO expectations that AI tools are now mature enough to deliver the same output with fewer people. This confidence has led to a step change in productivity, with some companies reporting that up to 75% of their code is AI-generated. As a result, workforce restructuring is accelerating, especially in roles like software development. However, this wave of AI-attributed layoffs is fueling skepticism, as many question whether job cuts are truly due to AI or other business pressures, highlighting a growing divide between leadership narratives and employee trust.