99% of CEOs are planning AI layoffs in the next 2 years — and entry-level workers will see the biggest hit. Prepare now

99% of CEOs are planning AI layoffs in the next 2 years — and entry-level workers will see the biggest hit. Prepare now Aditi Ganguly Mon, June 8, 2026 at 7:30 PM GMT+2 9 min read Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Evangelists of artificial intelligence, as well as leaders in that industry (1), say they believe the estimates of job losses due to AI are vastly overblown.

CEOs, though, are admitting a different story. A new study from consulting firm Mercer finds that virtually every employer is planning to cut jobs due to the transformative technology (2). The 2026 Global Talent Trends report spoke with 825 C-suite leaders, along with 1,650 HR leaders and a jaw-dropping 99% of the executives surveyed said they expect AI to lead to at least some headcount reduction in the next two years.

Top Picks Here’s how to get rich from rising US property values with as little as $100 — and without the stress of angry tenants Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s how to fix it ASAP The IRS usually taxes gold as a collectible — but this little-known strategy lets you hold physical bullion tax-free. Get your free guide from Priority Gold Nearly as many (98%) said they are also planning organization design changes in that same time period. Meanwhile, just 32% of the CEOs surveyed said they believed the workforce can combine both human and machine worker capabilities in an optimal manner, despite just under two-thirds saying they felt that redesigning work to incorporate automation will drive the greatest return on investment.

Bad news for grads The discouraging study numbers could be especially bad news for entry-level workers. It could also exacerbate an already worrying situation for recent college graduates. In the first quarter of 2025, the job market for 22-to-27-year-olds “deteriorated noticeably,” according to a New York Fed report (3).

And things could be getting worse. A separate consulting firm study by Oliver Wyman earlier this year found that the number of CEOs who were looking to reduce the number of junior roles in the next two years jumped from 17% in 2025 to 43% this year (4). A growing number of companies are pointing to AI as the reason for recent layoffs.

Meta, which laid off 8,000 employees on May 20 (5), cited technology as the reason. (Another 7,000 workers were reassigned to AI initiatives. ) Pinterest, Dow and Amazon have also indicated AI was behind recent layoffs (6).

Read More: Here’s the average income of Americans by age in 2026. Are you falling behind? AI risks While CEOs might be showing more favoritism towards AI these days, they might want to check with their CFOs and marketing departments.

Although investors are embracing the technology, consumers are increasingly pushing back. Story Continues A recent JPMorgan report found that despite the market excitement over AI, there has not been a clear increase in usage among either workplaces or households (7). Economist Michael Feroli wrote that just 12.

6% of respondents in the bank’s survey reported daily AI use last week, which was up just two percentage points from a year ago. Additionally, speakers at college graduations this spring who have sung the praises of AI have been loudly booed. Some companies are also learning that AI is more expensive than they expected.

Uber reportedly blew through its AI budget in just four months this year (8) — and now the company is trying to determine if that money was spent wisely. “That link is not there yet, right? ” Uber president and chief operating officer Andrew Macdonald said in an interview on the Rapid Response podcast (9).

“I think maybe implicitly there is more that is getting shipped, but it’s very hard to draw a line between one of those stats and, ‘Okay, now we’re actually producing 25% more useful consumer features. ’ “I think over the coming quarters and years, maybe that will become clearer, but I think today it’s hard, even if some of the underlying metrics are trending in a really astronomical direction. ” You May Also Like 10 minutes could get you up to $2M in life insurance coverage with no medical exams.

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Prepare your finances now AI isn't just changing how we work — it's increasingly changing who gets to keep their job. Employers announced just over 97,000 job cuts in May 2026 — the highest number since 2020, according to data from Challenger, Gray & Christmas (10). Roughly 40% of employers cited AI as the primary reason for job cuts — bringing total jobs slashed to 87,714 in the first five months of the year.

Job security isn't what it used to be. Even if your position feels stable today, taking steps to strengthen your finances now could make a major difference if economic conditions shift unexpectedly. Create an emergency fund One of the most important financial safeguards during uncertain times is a well-funded emergency account.

Traditionally, financial planners have recommended setting aside three to six months' worth of living expenses. But some experts think there should be a much larger cushion. Personal finance expert Suze Orman has long argued that workers should aim for at least eight months to a full year of essential expenses (11).

“Go back to 2007… You lost your job, you lost everything, you were working on this tech thing and all the startups went down,” she said during an interview with CNBC, adding, “Don’t go fooling yourself, ‘It’s okay, I can charge on a credit card, I can do this. ’ You should have at least eight months. Not six months, not three months, I’d like to see you have eight months to one year.

” A high-yield savings account can be an effective place to store those funds. Unlike traditional checking accounts that often pay little to no interest, high-yield accounts can help your emergency savings keep pace with inflation while still providing quick access if you lose your primary source of income. A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3. 30% through program banks and new clients can get an extra 0. 75% boost during their first three months on up to $150,000 for a total variable APY of 4.

05% . That’s ten times the national deposit savings rate, according to the FDIC’s March report. Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/month minimum) to their Cash Account and open and fund a new investment account an additional 0.

25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4. 30% . With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times.

Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks . Audit and lower your fixed costs Once you've built a healthy emergency fund, the next step is making sure your monthly budget is as lean as possible. While it's easy to focus on cutting back on discretionary spending like dining out or entertainment, your fixed expenses often offer the biggest opportunities for long-term savings.

Start by reviewing the bills that appear every month, regardless of how much you spend. One of the easiest places to start is insurance — comparing quotes from multiple providers could result in substantial savings. OfficialHomeInsurance.

com lets you compare offers from leading home insurance providers near you for free. Here’s how it works: Simply enter some basic information about yourself and the type of home you own and OfficialHomeInsurance will browse through their database of over 200 insurers and display the lowest quotes for you in just two minutes. By comparing your options and selecting the best rate available, you could save an average of $482 per year on premiums .

For those looking to lower their monthly car insurance premiums, platforms like Insurify , let you easily shop around and compare quotes offered by reputable insurance providers. Just by comparing quotes and selecting the best deal, customers could see average potential savings of $1,100 — all in under three minutes. Not only is the process 100% free, but you could also save up to 15% by bundling your car and home insurance .

Create a source of passive income In an era where layoffs can arrive with little warning, relying solely on a paycheck may feel increasingly risky. Building a secondary income stream can provide both financial flexibility and peace of mind if your employment situation suddenly changes. Of course, not everyone has the time — or desire — to take on a second job or side hustle.

That's where passive income comes in. Certain investments can generate regular cash flow while requiring relatively little day-to-day effort from you. Real estate investments can be a lucrative option.

Rental payments can provide a recurring cash flow, while rising rents may help offset inflation over time. There are ways to tap into real estate without making a 30-year mortgage or the responsibilities of a landlord. Crowdfunding platforms like Arrived let you invest in shares of vacation and rental properties across the country with as little as $100.

Backed by world-class investors like Jeff Bezos, Arrived handles the day-to-day property management throughout the investment’s lifecycle. Any rental income generated is distributed to investors monthly — after expenses are deducted — giving you a chance to build a passive income stream. The best part?

For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match . - With files from Chris Morris. Article Sources We rely only on vetted sources and credible third-party reporting.

For details, see our ethics and guidelines . Reuters (1) ; Marsh (2) ; Fox Business (3) ; Oliver Wyman Forum (4) ; The New York Times (5) ; CBS News (6) ; Seeking Alpha (7) ; The Verge (8) ; Rapid Response podcast/YouTube (9) ; Challenger, Gray & Christmas ( 10 ); CNBC ( 11 ) This article provides information only and should not be construed as advice. It is provided without warranty of any kind.