Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAditi GangulyMon, June 8, 2026 at 7:30 PM GMT+2 9 min readMoneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.Evangelists of artificial intelligence, as well as leaders in that industry (1), say they believe the estimates of job losses due to AI are vastly overblown. CEOs, though, are admitting a different story.A new study from consulting firm Mercer finds that virtually every employer is planning to cut jobs due to the transformative technology (2). The 2026 Global Talent Trends report spoke with 825 C-suite leaders, along with 1,650 HR leaders and a jaw-dropping 99% of the executives surveyed said they expect AI to lead to at least some headcount reduction in the next two years.Top PicksHere’s how to get rich from rising US property values with as little as $100 — and without the stress of angry tenantsDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s how to fix it ASAPThe IRS usually taxes gold as a collectible — but this little-known strategy lets you hold physical bullion tax-free. Get your free guide from Priority GoldNearly as many (98%) said they are also planning organization design changes in that same time period.Meanwhile, just 32% of the CEOs surveyed said they believed the workforce can combine both human and machine worker capabilities in an optimal manner, despite just under two-thirds saying they felt that redesigning work to incorporate automation will drive the greatest return on investment.Bad news for gradsThe discouraging study numbers could be especially bad news for entry-level workers. It could also exacerbate an already worrying situation for recent college graduates.In the first quarter of 2025, the job market for 22-to-27-year-olds “deteriorated noticeably,” according to a New York Fed report (3). And things could be getting worse.A separate consulting firm study by Oliver Wyman earlier this year found that the number of CEOs who were looking to reduce the number of junior roles in the next two years jumped from 17% in 2025 to 43% this year (4).A growing number of companies are pointing to AI as the reason for recent layoffs. Meta, which laid off 8,000 employees on May 20 (5), cited technology as the reason. (Another 7,000 workers were reassigned to AI initiatives.) Pinterest, Dow and Amazon have also indicated AI was behind recent layoffs (6).Read More: Here’s the average income of Americans by age in 2026. Are you falling behind?AI risksWhile CEOs might be showing more favoritism towards AI these days, they might want to check with their CFOs and marketing departments. Although investors are embracing the technology, consumers are increasingly pushing back.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info