CEOs brace for leaner workforces as AI pressures entry-level jobs

A Mercer survey of 825 C-suite leaders found that 99% of CEOs expect AI to result in at least some headcount reduction within the next two years. Mercer’s 2026 Global Talent Trends report also found employee ‘thriving’ dropped from 66% in 2024 to 44% in 2026, while 40% of workers fear losing their jobs because of AI.

Layoff announcements are already reflecting the shift. Challenger, Gray & Christmas said employers announced more than 97,000 job cuts in May 2026, the highest monthly total since 2020, with roughly 40% of employers citing AI as a primary factor. Executives see AI as a way to raise productivity, lower costs and speed decisions, while workers face uncertainty over which tasks remain defensible.

Entry-level roles appear especially exposed. Oliver Wyman found the share of CEOs planning to reduce entry-level positions rose from 17% in 2025 to 43% in 2026, as AI systems take on research, scheduling, administrative work, data analysis and basic content creation. Suze Orman is urging workers to avoid becoming ‘invisible’ by documenting accomplishments, maintaining portfolios and keeping measurable evidence of their value.