99% of CEOs Say They Will Cut Workforce Due to AI Adoption

According to a survey conducted by consulting firm Mercer on about 1,000 CEOs of major US companies, 99% of respondents said they plan to reduce or replace their workforce within the next two years to adopt AI.

In addition, 98% of CEOs were found to be already undergoing large-scale restructuring related to integrating AI systems. During this technological transition, employee well-being indicators are showing a downward trend. Job environment satisfaction, which was 66% in 2024, is projected to fall to 44% by 2026.

AI utilization is also accelerating in HR management:

• 49% of HR professionals said that combining employee sentiment and behavioral data to manage the workforce will become important.
• 44% and 43% agreed on the importance of continuous monitoring platforms and AI chatbot utilization, respectively.
• Some managers are using automated algorithms to determine who to lay off.

Analysts say these changes are fundamentally transforming traditional labor market models as companies prioritize automated systems for operational optimization, and will weaken employees' bargaining power.