Fewer Employees 'Thriving' Amid Rise of AI

Key Points:

• A Mercer survey of 12,000 workers, including 825 executives, found that 99% of executives expect AI to cause layoffs within the next two years as they pursue higher returns through automation.
• Nearly two-thirds of executives believe redesigning work around AI and automation will yield the biggest benefits, despite many CEOs not yet seeing cost reductions or revenue increases from AI adoption.
• Talent scarcity and digital acceleration, including AI, are top factors shaping executive plans, but only 32% believe their organizations can effectively integrate people and machines.
• Employee well-being is declining, with the percentage of "thriving" workers dropping from 66% in 2024 to 44% in 2026, driven by job-loss fears, understaffing, and uneven AI training access; over a third of employees would consider quitting if left behind on AI skills.
• Tech-sector AI-related layoffs have already exceeded 144,000 in 2026, with projections of over 220,000 additional job cuts by year-end, marking a nearly 50% increase compared to 2025.