As businesses expand AI adoption, employers increasingly plan to replace workers with AI tools, according to a September report by Resume.org. Nearly 30% of companies have already replaced roles with AI, and by the end of 2026, 37% expect additional job replacements.

Kara Dennison, head of career advising at Resume.org, said AI adoption will reshape the job market within 18 to 24 months. She noted that routine roles will continue to disappear as automation grows. At the same time, new positions will emerge in AI oversight, prompt engineering, and data ethics. Dennison added that human-AI collaboration will also create fresh career opportunities.

A survey of 1,000 U.S. business leaders found that half have reduced hiring, 39% conducted layoffs in 2025, and 35% plan more layoffs this year. Additionally, 58% predict layoffs are likely in 2026. Leaders pointed to economic uncertainty, trade policies, and AI adoption as top drivers for workforce reductions.

High-salary employees and workers without AI-related skills face the greatest risk of layoffs. Entry-level and recently hired employees are also more vulnerable. “High-salary roles are often targeted first to cut payroll costs, while employees lacking AI skills are at higher risk,” Dennison explained.

“There is a clear push for leaner, tech-ready workforces where cost efficiency and agility outweigh traditional career tenure,” Dennison added. She urged professionals to reskill in AI and emerging technologies.

Dennison emphasized that soft skills, adaptability, critical thinking, and emotional intelligence will distinguish top talent in the evolving AI-driven workplace. Employers can improve retention and engagement by training workers in both digital and human skills.

Recent trends show HR leaders conducting “serial layoffs” in rapid succession, according to Careerminds. This reactive workforce management has decreased morale and led to the loss of critical skills among remaining employees.

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News Source: Hrdive.com