Increasing impact of AI, heads of 99% companies expressed fear of layoffs, young employees are in biggest danger

New Delhi. Artificial Intelligence (AI) is no longer limited to just making work easier and faster. According to a new global report, AI may have a major impact on jobs in the next two years and its biggest impact may be seen on young employees starting their careers.

The latest *Global Talent Trends Report* of global HR and consulting firm Mercer claims that more than 99 percent of business executives believe that in the coming two years, there will be reduction in the number of employees at some level due to AI. Nearly 12,000 executives, HR leaders and employees from across the world were interviewed for this report.

Entry-level employees are most affected.

According to the report, the biggest impact of AI may be on those employees who are starting their careers. Many of the tasks through which new employees gained experience and skills can now be easily performed by AI. This is why companies are changing their strategy regarding junior level recruitment.

Over the past year, the number of companies that have cut entry-level positions has increased from 17 percent to 43 percent. Especially professionals in the age group of 22 to 27 years are considered to be the highest risk group.

Race to adopt AI, but preparations incomplete

The report also revealed that companies are rapidly adopting AI technology, but most organizations are not fully prepared for it. According to the survey, only one-third of companies are confident that they will be able to establish effective coordination between human resources and AI. This means that many organizations are implementing AI first and strategizing about the changing roles of employees later.

Will companies benefit from layoffs?

Experts believe that reducing the number of employees does not always yield better results. According to another study, companies that conducted mass layoffs did not always achieve greater profits or productivity. In many cases, better results were seen when AI was used to enhance the efficiency of employees rather than replace them.

Reduction in increasing jobs due to AI

According to the report, in the year 2026, AI has become not a possibility of the future but a reality of the present. AI was a major reason for the reduction of about 21,500 jobs in the US in April 2026 alone, which was about 26 percent of the total layoffs that month.

So far in the year 2026, more than 49 thousand jobs have been lost due to AI-related reasons, which is almost equal to the total figure of 2025. Tech giants like Meta, Oracle, Salesforce and Block have also reduced the number of employees under AI-based automation and re-structuring.

Which skills will be in demand in the future?

According to experts, in the coming times the demand for those who have the ability to work closely with AI will increase. So it will be more important to learn to use AI effectively rather than treating it as a competitor.

At present, it is believed that AI is not just a technological change but has become a major force influencing jobs, recruitment process, career development and work culture. The coming two years will decide whether this technology will become a challenge for employees or open the way for new opportunities.