CEOs Predict AI-Related Workforce Reductions by 2028, Mercer Survey Finds

AI Reshaping Workforce Plans

A new Mercer Global Talent Trends 2026 survey suggests that artificial intelligence is expected to significantly influence workforce planning over the next two years. Among 825 C-suite executives surveyed, 99% said they anticipate some level of workforce reduction linked to AI adoption by 2028.

The study also found that nearly all executives expect organizational changes as AI becomes more integrated into business operations. Around 65% believe that between 11% and 30% of employees will need to be redeployed or reskilled as companies adapt to new technologies.

Employee Confidence Declines

The report highlights growing concerns among workers. The share of employees who say they are thriving at work dropped to 44% in 2026, down from 66% in 2024. Employee worries about losing jobs due to AI also increased, rising from 28% to 40% during the same period.

According to Mercer, many employees feel the emotional effects of AI adoption are being underestimated. While a majority of workers believe leadership is not fully addressing these concerns, only a small percentage of HR leaders currently incorporate such issues into digital transformation strategies.

Organizations Still Preparing for Human-AI Collaboration

Despite strong executive expectations around AI-driven change, many organizations acknowledge they are not fully prepared. Only 32% of executives believe their companies are effectively combining human and machine capabilities.

Preparedness levels have also declined since 2024, with just over half of surveyed executives saying their organizations are ready for a workforce environment increasingly shaped by AI. Investors, however, remain optimistic about businesses that invest in AI skills development and workforce training.

Entry-Level Roles Face Greater Exposure

Jobs traditionally used as starting points for early-career professionals may face increasing pressure as AI tools take over tasks such as scheduling, research, administrative support, data analysis, and basic content creation.

This shift could reduce opportunities for workers to gain initial experience, making reskilling initiatives, mentorship programs, and redesigned onboarding processes more important for employers.

Layoff Data Shows Growing AI Impact

Separate figures from Challenger, Gray and Christmas indicate that employers announced 97,006 job cuts in May 2026. AI was identified as the main factor behind 38,579 of those reductions, representing 40% of all announced cuts during the month.

The share of layoffs linked to AI has increased steadily throughout 2026, rising from 7% in January to 40% in May. Through the first five months of the year, AI-related layoffs have already exceeded the total recorded for all of 2025.

What to Watch

Future Mercer updates may provide additional details on industry-specific and role-based impacts. Hiring trends, evolving skill requirements, and employer-led reskilling programs will also serve as important indicators of how AI continues to influence workforce decisions.