99% of CEOs say they're planning AI layoffs in the next two years — and entry-level workers will face the biggest hit. What the numbers show
A Mercer study reveals 99% of CEOs surveyed expect AI-driven job cuts in the next two years, with entry-level roles most at risk, while AI adoption among consumers remains low. Companies like Meta, Pinterest, Dow, and Amazon have already cited AI as a reason for recent layoffs, with junior positions seeing a sharp increase in targeted reductions.
A new study from Mercer found that 99% of 825 C-suite executives surveyed expect AI to lead to job cuts within the next two years. The 2026 Global Talent Trends report also indicated that 98% of these leaders plan organizational design changes due to AI adoption. Despite this, only 32% of CEOs believe human-machine collaboration can be optimized effectively, despite two-thirds seeing automation-driven redesigns as the highest return on investment. The findings suggest entry-level workers will be hardest hit, worsening an already difficult job market for recent graduates. The New York Fed reported a noticeable deterioration in employment for 22-to-27-year-olds in early 2025, while a separate Oliver Wyman study found that CEOs planning to reduce junior roles jumped from 17% in 2025 to 43% in 2026. Major companies have already acted on these trends. Meta laid off 8,000 employees on May 20, citing AI as the reason, while another 7,000 were reassigned to AI initiatives. Pinterest, Dow, and Amazon have also attributed recent layoffs to AI adoption. Despite executive enthusiasm, consumer and workplace AI adoption remains limited. A JPMorgan report found only 12.6% of respondents used AI daily, up just 2 percentage points from a year ago. Economist Michael Feroli noted that market hype has not translated into widespread usage in households or workplaces. The study highlights a growing divide between executive expectations and real-world AI integration, with potential long-term consequences for early-career professionals.
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