AI Job Cuts Loom: 99% of CEOs Plan Layoffs by 2028

2026-06-22 economy

New York, Sunday, 21 June 2026.
A staggering 99% of CEOs expect AI-driven job cuts within two years, signaling a seismic shift in the workforce. With 40% of employees fearing displacement and AI now cited in 40% of recent layoffs, the urgency to adapt has never been clearer. Financial expert Suze Orman warns workers: upskill now or risk becoming ‘invisible’ in an AI-dominated job market.

The CEO Consensus: AI-Driven Layoffs Are Inevitable

A May 2026 survey by human resources consulting firm Mercer reveals that 99% of chief executive officers (CEOs) anticipate artificial intelligence (AI) will lead to significant workforce reductions within the next two years, by June 2028 [1]. The findings, part of Mercer’s “2026 Global Talent Trends” report, are based on responses from 825 C-suite leaders and 1,650 human resources (HR) executives across industries [1]. This near-unanimous expectation among corporate leaders underscores the rapid integration of AI technologies and their perceived inevitability in reshaping employment structures. The survey also found that 98% of CEOs plan organization design changes within the same timeframe, signaling a fundamental restructuring of corporate hierarchies and workflows [1].

Entry-Level Roles at Highest Risk

The Mercer report highlights that entry-level positions are particularly vulnerable to AI-driven automation. Roles in research, administration, scheduling, data analysis, and basic content creation are increasingly being automated, narrowing traditional career pathways for recent graduates and early-career professionals [1]. A separate study by management consulting firm Oliver Wyman corroborates this trend, showing that the percentage of CEOs planning to cut entry-level roles rose sharply from 17% in 2025 to 43% in 2026 [2]. This shift reflects a broader economic recalibration as companies prioritize efficiency and cost reduction through AI adoption, potentially exacerbating youth unemployment rates, which stood at 8.3% for individuals aged 16-24 in the United States as of April 2026 [3].

The Layoff Surge: AI as the New Primary Driver

The impact of AI on employment is already quantifiable in recent layoff data. U.S. employers announced 97,000 job cuts in May 2026 alone, the highest May total since the onset of the COVID-19 pandemic in 2020, according to a report by outplacement firm Challenger, Gray & Christmas [4]. This figure represents the third consecutive monthly increase in layoffs, following 83,387 cuts in April, 60,620 in March, and 48,307 in February 2026 [4]. Notably, AI was cited as the primary reason for nearly 40% of May’s job cuts, a dramatic increase from 7% in January, 10% in February, 25% in March, and 26% in April 2026 [4]. The cumulative total of AI-attributed job cuts in the first five months of 2026 reached 87,714, already surpassing the 54,836 AI-related layoffs recorded for the entirety of 2025 [4]. 59.957 represents the year-over-year percentage increase in AI-driven job cuts.

Worker Anxiety and the ‘Invisibility’ Warning

The rapid adoption of AI technologies has coincided with a marked decline in employee morale. Mercer’s report indicates that the percentage of workers reporting they are “thriving” in their roles fell from 66% in 2024 to 44% in 2026 [1]. This 22-percentage-point drop aligns with growing anxiety about job security, with 40% of workers expressing fear of AI-related job loss, according to a CNBC survey conducted in April 2026 [5]. Financial expert Suze Orman has issued a stark warning to workers, advising them to proactively upskill or risk becoming “invisible” in an AI-dominated job market [1]. Orman emphasized the importance of documenting achievements and measurable results to maintain career visibility during organizational restructuring, stating, “The goal is not self-promotion for its own sake, but creating evidence of value that can be understood outside a current employer” [1].

Industry-Specific Impacts and the Automation Divide

The effects of AI-driven automation are not uniform across industries. A Brookings Institution analysis identifies administrative, creative, analytical, and technical roles as particularly susceptible to AI disruption [6]. In the financial services sector, for example, AI-powered tools are increasingly handling routine tasks such as data entry, customer service inquiries, and even preliminary financial analysis, roles traditionally filled by entry-level employees [6]. The technology sector itself is not immune; software developers face competition from AI-assisted coding platforms, while content creators contend with AI-generated text, images, and videos [6]. Conversely, industries requiring high levels of human interaction, such as healthcare and education, are experiencing slower AI integration, potentially creating a bifurcated job market where human-centric roles remain in demand while repetitive or data-driven positions face obsolescence [6].

Economic Implications: Productivity Gains vs. Labor Displacement

The anticipated AI-driven workforce reductions raise critical questions about the broader economic impact. Proponents of AI adoption argue that automation will lead to significant productivity gains, citing a 2026 McKinsey & Company report estimating that AI could add between $17.1 trillion and $25.6 trillion to the global economy by 2030 through increased efficiency and innovation [7]. However, critics warn of potential negative externalities, including reduced consumer spending power due to job losses, increased income inequality, and the strain on social safety nets [8]. The U.S. Bureau of Labor Statistics reported that the unemployment rate stood at 3.9% in May 2026, unchanged from April but up from 3.4% in January 2023 [9]. Economists are closely monitoring whether AI-driven productivity gains will offset the labor displacement effects, with early indicators suggesting a complex and uneven economic transition [10].

Preparing for the AI Workforce: Upskilling and Policy Responses

As AI reshapes the employment landscape, both individuals and institutions are grappling with adaptation strategies. The Mercer report reveals that only 32% of organizations feel prepared to manage the workforce transition driven by AI and other technological advancements [1]. This preparedness gap has prompted calls for increased investment in education and upskilling programs. The World Economic Forum’s “Future of Jobs Report 2026” estimates that 50% of all employees will need reskilling by 2028 to remain competitive in an AI-augmented job market [11]. Governments are also responding; in June 2026, the European Union finalized its “AI Skills Pact,” a €10 billion initiative aimed at training 5 million workers in AI-related competencies by 2030 [12]. In the United States, the Biden administration announced a $2 billion federal grant program in May 2026 to support community colleges and vocational schools in developing AI-focused curricula [13]. However, critics argue that these efforts may be insufficient to address the scale and speed of AI-driven disruption, particularly for mid-career workers who may lack the time or resources to pursue extensive retraining [14].

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AI layoffs workforce automation