3 min readUpdated: Jun 3, 2026 09:44 AM IST Artificial Intelligence is expected to reshape workplaces dramatically over the next two years, with nearly all corporate leaders anticipating workforce reductions as companies accelerate AI adoption.
According to a new global survey by consulting firm Mercer, more than 99 per cent 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, human resources professionals and employees.
The findings highlight how rapidly AI is becoming a central focus for business leaders. Nearly 98% of executives said they are planning organisational changes over the next two years, with many looking at ways to integrate AI and automation into their operations.
The survey comes as several major technology companies have already linked job cuts to AI investments. Firms including 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.
Despite concerns over job losses, some business leaders argue that fears of an AI-driven employment crisis may be overstated. Goldman Sachs CEO David Solomon recently 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 study suggested that the most significant workforce reductions are currently concentrated in sectors such as technology and finance.Story continues below this ad
However, employee concerns remain high. Mercer’s survey found that only about one-third of executives believe companies have figured out how to successfully combine human and machine capabilities at scale.
Workers are also becoming increasingly anxious about their future roles. 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.
The trend reflects broader changes in the labour market.
According to a recent Pew Research Center survey, 21 per cent of Americans say AI is already used in some part of their work. While most workers report limited AI impact so far, younger professionals and recent graduates are experiencing the effects of AI integration more directly as companies continue to transform how work gets done.