Business · Companies · 1 day ago

Companies are urged to assess AI’s impact before planning job cuts

Companies are urged to assess AI’s impact before planning job cuts

The analysis argues that companies should not begin adopting artificial intelligence by deciding how many jobs to cut.

A global McKinsey survey found that 32% of participants in 2025 expected AI-related staff reductions within a year, but only 14% said cuts had happened a year later.

Two-thirds reported little or no change in total employment because of AI, while 39% now expect cuts in the next 12 months.

The survey also found that 80% said AI improved their individual productivity, but only 37% saw a positive effect on their organisation’s operating results.

Saving time does not always save money, because work may shift to new tasks, checking results or handling exceptions.

Gartner estimates that by 2029, 30% of employees dismissed because of AI replacement may need to be rehired, sometimes at higher cost.

The analysis recommends understanding how work should function and measuring its overall results before deciding whether fewer staff are needed.

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