One in six UK employers expect job cuts from AI in next year

"One in six UK employers expect artificial intelligence to reduce the size of their workforce within the next 12 months, according to a major new survey warning of growing disruption to white-collar employment. Research by the Chartered Institute of Personnel and Development (CIPD) found that 62 per cent of those expecting job losses believed clerical, junior managerial, professional, or administrative roles would be the first to go as automation accelerates."

"The warning comes as firms weigh AI adoption against high employment costs and sluggish growth since last year's Budget. Global tech and professional services groups have already begun restructuring. Amazon said last month it would cut 14,000 corporate roles, citing generative AI as the most transformative technology since the internet, while PwC reduced its global workforce by 5,600 in the past fiscal year - its first major downsizing since the 2008 financial crisis - despite spending nearly $1.5 billion to expand its AI capabilities."

One in six UK employers expect artificial intelligence to reduce their workforce within the next 12 months, with 62% of those expecting losses naming clerical, junior managerial, professional and administrative roles as first to go. Large private sector firms are most likely to cut headcount, with 26% anticipating reductions, compared with 17% across the private sector and 20% in the public sector. Global technology and professional services firms have begun restructurings; major employers like Amazon and PwC have cut corporate roles while investing in AI. Employers are becoming more cautious about hiring amid cost pressures, AI disruption and policy uncertainty.

Read at Business Matters