We have been wondering when the AI layoffs would begin. Some people say that they have already started while others insist that such job cuts won’t come for at least another decade. Perhaps there is one thing we are all becoming increasingly certain about—AI layoffs are no longer theoretical. Company executives are today openly planning for them.
According to the latest Mercer survey, Global Talent Trends 2026, involving 825 C-suite leaders and 1,650 HR leaders, there has been a dramatic shift in attitudes. The survey interviewed decision-makers in sixteen different countries and sixteen industries.
The vast majority of survey respondents expect there will be AI-driven layoffs in their companies within the next twenty-four months. There was near-universal agreement (99%) among the individuals surveyed.
Initially, AI entered the business world as a productivity tool. Over the past few years, it has evolved rapidly, and one consequence of its adoption has been the planned layoff of some workers.
AI layoffs – augmentation over replacement
According to most executives, they are seeking lower costs and higher productivity. AI is allowing them to produce the same amount of goods or get the same amount of office work done with fewer people.
Routine administrative and analytical tasks, which traditionally have required large numbers of employees, can mostly be carried out by artificial intelligence today.
AI is not completely replacing the workforce; it is redesigning it. Not everybody is being replaced, though some certainly are. White-collar and blue-collar workers are increasingly working alongside AI platforms—we are leveraging AI to boost productivity. Some people refer to this process as augmentation over replacement.
The majority of people in the survey commented that AI-driven work redesign creates the greatest value for their companies. In other words, businesses gain the most when they rethink how their employees work, rather than just using AI to cut staff.
Entry-level workers most at risk
When companies embrace AI in their platforms, systems, or procedures, people in junior positions—entry level workers—are the most vulnerable. Many entry-level tasks are easily automated by AI. If you are a young professional aged 22-to-27, you will likely find it much harder to get a good job offer compared to your predecessors ten or more years ago.
A significant number of CEOs say that their companies are reducing junior hiring plans. In today’s job market, many young graduates find themselves in a catch-22 situation—companies want to hire people who already have experience, but they need to be hired in order to gain that experience.
The survey found that only 32% of executives believe their employees know how to effectively use AI. There is a large gap between layoffs and workforce preparation.
Many companies are not providing their workers with comprehensive AI training programs. Even though business leaders seem optimistic about AI, it remains uncertain whether their employees are actually ready for it.
How do workers feel?
Workers are feeling increasingly anxious as AI adoption accelerates worldwide. Many fear complete replacement over augmentation.
Blue-collar and white-collar workers who have no AI training or experience wonder whether they should quit. If they left their current industry now, could they retrain for an AI-proof job or one that AI can’t replace?
AI layoffs – examples
Many tech firms are increasingly citing AI during layoffs. Freshworks, a California-based software company that creates customer service and business management tools, recently announced workforce reductions linked to AI.
Examples of well-known companies are Oracle, Meta, Coinbase, Amazon, Google, Microsoft, Salesforce, and Cisco. Every month, the number of new companies added to the list grows faster and faster.
Other industries are seeing the same changes in workplace dynamics, not just information technology. Employers, both in the public and private sectors, are embracing AI and creating environments where employees operate alongside AI. How long this evolution will last and what the final outcome may be remains to be seen.
