99% of CEOs are preparing for layoffs caused by AI

The game of musical chairs in the corporate world is about to get new steps, and the choreography is led by artificial intelligence. According to a recent Mercer report, nearly all CEOs (99%, to be exact) expect AI and automation to lead to headcount reductions over the next two years. It's a forecast that might seem alarming, but it's not surprising. AI is changing the organizational structure of many companies, and leaders are aware they need to prepare for this transformation.

Work redesign, integrating AI tools, is seen as the path to the best returns. However, only a third of leaders believe their current workforce is ready for this combination with automation. This places the responsibility on managers and HR teams, who need to reinvent themselves to lead hybrid teams of humans and AI agents. The detail is that while some jobs will be eliminated, others will emerge, and the challenge lies in how to balance this equation.

The role of HR becomes crucial in this scenario, not just to manage layoffs, but to improve the employee experience and attract new talent. And for workers, the message is clear: AI literacy will be fundamental. A third of employees consider leaving their jobs if they do not have adequate access to AI tools and training. This demonstrates that, even with automation on the rise, interest in AI remains strong among workers.

The future promises significant organizational changes, such as simplifying reporting lines, centralizing governance, and creating self-organized teams. For leaders, the advice is clear: prioritize work design and upskilling. For HR, the shift should be towards performance metrics that combine humans and machines. And for workers, the lesson is to take control of their own AI education.

Ultimately, AI is not just removing jobs – it is reshaping the way we work. And while the landscape may seem challenging, it is also full of opportunities for those willing to adapt and evolve. The future of work won't just be about who is in the room, but about how everyone moves and collaborates within it.