'AI alone is not enough': 99% of CEOs say they are getting ready for layoffs caused by AI

Date:
Wed, 27 May 2026 11:55:00 +0000

Description:
AI won't replace humans, but companies are preparing to change how they
employ workers and how they measure outcome.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter 99% of business leaders are preparing to cut staff in the next couple of years Managers and HR teams need to prepare for human-AI hybrid workforces Workers need to take ownership of their own AI literacy Virtually all (99%) execs expect AI and automation to result in headcount reductions within the next two years, according to data from Mercer's latest Global Talent Trends report .

Most leaders believe that redesigning work to incorporate AI tools will see the best returns, only one in three (32%) believe their current workforce is in a strong position to be combined with automation. To that tune, business leaders' biggest priorities for the year ahead include redesigning work, improving HR analytics and upskilling managers to lead hybrid workforces of both humans and AI agents. Latest Videos From You may like Gartner warns companies relying on layoffs to free up room for AI may be caught out CEOs could be at risk if they mess up AI deployment Cutting costs with AI misses the point Humans will be displaced, but they're remain imperative It's widely recognized by this point that AI will change job roles, removing some and introducing others, rather than entirely eliminating the human workforce. And it's the HR department that faces some of the biggest challenges HR teams' biggest priority is to improve the employee experience to attract top talent.

Still, headcount reduction will be inevitable in some areas, and Mercer's
data indicates early-career workers aged up to around 27 might be affected
the most.

Even as administrative workloads become automated, workers still clearly have an appetite for artificial intelligence, with a third (35%) noting they'd consider quitting if they felt didn't have sufficient access to tools or training.

Looking ahead, some of the most prevalent organizational changes we're likely to see include simplifying reporting lines, centralizing governance, creating self-organizing teams and flattening hierarchies. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Mercer's recommendations for the future are for C-suite leaders to prioritize work design and upskilling, for HR leaders to shift toward human-machine performance metrics, and for workers to take ownership of their own AI literacy. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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