Overview
- Only 11% of companies are currently attributing layoffs to AI, though about 31% of tech, media and telecom clients show early job pressure, according to Goldman Sachs bankers.
- Bankers forecast a 4% reduction in head count over the next year and 11% within three years, with financial institutions potentially seeing cuts of up to 14%.
- About 37% of clients already use AI in regular production, with adoption expected to reach 50% next year and 74% in three years, even as many see the technology as early and cite skills gaps.
- Customer support faces the highest risk for reductions, followed by administrative support, operations and IT or engineering, with many firms planning hiring freezes or relying on attrition before layoffs.
- Recent cuts by major employers—including Amazon’s 14,000 corporate roles, UPS’s 48,000, Nestle’s 16,000 and Target’s 1,000—reflect broader restructuring as companies expand AI initiatives, redesign HR workflows and invest in reskilling.