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From Pink Slips to Silent Sidelining: Inside adland’s layoff and anxiety crisis
Goldman Sachs flags AI-driven job cuts risk in 2026
While AI continues to promise innovation and productivity gains, Goldman Sachs cautioned that it also brings significant uncertainty for workers.
While AI continues to promise innovation and productivity gains, Goldman Sachs cautioned that it also brings significant uncertainty for workers.
A fresh wave of layoffs could hit global workplaces in 2026 as companies accelerate the use of artificial intelligence to cut costs and improve efficiency, even as broader economic conditions remain relatively stable.
According to a report by Goldman Sachs, job losses linked to AI adoption are likely to continue into 2026, despite the fact that financial markets and investors are no longer consistently rewarding companies for reducing employee costs. The report, released just days ahead of the new year, noted that while some indicators may appear reassuring for workers, the overall assessment suggests that automation remains a significant threat to jobs.
Companies are investing heavily in AI tools to automate routine tasks, speed up operations and lower expenses. Rather than expanding headcount, firms are increasingly relying on technology to perform work that was previously done by employees, with the primary objective of reducing labour costs instead of driving business expansion.
The earlier trend of investors rewarding companies for announcing layoffs has begun to fade. Job cuts, once seen as a sign of financial discipline, are now often viewed by markets as a potential indicator of future growth challenges rather than corporate strength.
Despite this shift in investor perception, many companies may still proceed with layoffs if they believe automation and AI adoption will help them remain competitive over the long term.
The report also noted that job losses linked to AI-driven cost cutting have not been confined to the technology sector. Consulting firms, IT services companies and more traditional businesses have also reduced staff in an effort to manage costs and prepare for wider digital transformation.
While AI continues to promise innovation and productivity gains, Goldman Sachs cautioned that it also brings significant uncertainty for workers, with the response of both businesses and employees set to play a critical role in shaping the future of work in the years ahead.
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