Job Cuts or Job Change? AI Debate Heats Up

Summary

A Mercer survey finds most Australian firms expect AI to cut up to 20% of jobs within two years, while worker confidence drops and fear of job loss rises. Cynthia Cottrell, Mercer workforce solutions leader, discusses the gap between expected productivity gains and actual capability, and advises graduates to learn AI tools while honing critical thinking.

• Mercer survey: 98% of Australian organizations plan restructures this year.
• Employee thriving dropped to 44%, lowest in 10 years.
• Fear of job loss rose from 28% in 2024 to 40% in 2026.
• 99% of CEOs expect AI-driven headcount cuts in next few years.
• Only 32% of CEOs believe they can integrate humans and machines for productivity.
• Australia not more exposed to AI job loss than other regions.
• Graduates advised to learn AI tools and develop creativity and critical thinking.