Artificial intelligence is expected to cause another round of job losses in 2026 as companies continue expanding automation to cut their operating costs, according to a new report from Goldman Sachs. The research highlights a widening gap between a stable global economy and the growing uncertainty workers feel about their jobs. Even though economic conditions remain mostly steady, employees in many industries are becoming increasingly unsure about their future.
Companies across the world are investing heavily in AI tools that can now handle tasks previously done by humans. These include responding to customer queries, processing information, managing calendars, reviewing documents, and carrying out many routine office duties. As these systems become faster and more reliable, businesses can complete the same amount of work with fewer people. This trend is expected to strengthen further in 2026.
The way investors view layoffs is also changing. In earlier years, reducing staff numbers was often seen as a positive sign of efficiency. Today, financial markets are more likely to interpret large layoffs as a warning signal that company growth may be slowing. Despite this shift in perception, firms continue pushing forward with automation-based restructuring because of ongoing pressure to reduce expenses and stay competitive.
Why companies are cutting jobs in a stable economy
The report explains that most job cuts are not being driven by an economic slowdown. Instead, they are part of long-term strategies to reshape how companies operate using artificial intelligence. Automation is being used to lower costs and redesign business models for the future.
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Many organisations are choosing not to replace employees who leave, pausing new recruitment, or removing entire job categories as AI takes over specific duties. This transformation is affecting a wide range of sectors, including technology, consulting, finance, manufacturing, and traditional office environments.
Over the past year, job reductions have already occurred across many industries. Large technology companies were among the first to announce staff cuts, but similar actions soon appeared in other sectors. Most of these changes were described as restructuring rather than urgent responses to financial problems.
One important point in the report is that companies are often reducing their workforce before AI has delivered major productivity improvements. In many cases, jobs are being eliminated based on expectations of future benefits rather than clear performance gains today. This shows how strongly business leaders believe automation will eventually reshape their operations.
For workers, however, the impact is already being felt. Even people in careers once viewed as stable are now dealing with rising uncertainty about their professional security.
Which jobs are most at risk and how work is changing
Jobs that involve repetitive, predictable, and rule-based tasks face the highest risk from automation. These include many administrative roles, customer service jobs, and certain professional service positions.
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Activities such as answering common customer questions, processing paperwork, scheduling meetings, and reviewing standard contracts can now be handled by AI with growing accuracy. As a result, companies require fewer employees to perform these tasks.
At the same time, new job opportunities are emerging in areas linked to artificial intelligence. Roles in AI development, data management, system oversight, cybersecurity, and digital compliance are expanding. However, these positions demand very different skills and training from the roles being phased out.
This creates a challenging transition for many workers. While new roles are becoming available, not everyone who loses a job can easily move into these positions. The report stresses the importance of ongoing learning and reskilling, but also recognises that adapting to these changes will not be easy for everyone.
Employers also face their own difficulties. They must balance cost savings with the need to keep experienced employees motivated and engaged. Large-scale layoffs can weaken trust within organisations and make it harder to retain skilled workers, especially as competition for advanced digital talent remains strong.
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The report also notes that the productivity gains from AI may take years to fully spread across the wider economy. Until then, many companies appear prepared to absorb the social and organisational pressure that comes with major workforce changes.
As artificial intelligence becomes more deeply integrated into daily business operations, job uncertainty is becoming a permanent part of modern working life. Even without an economic downturn, automation is steadily transforming how work is carried out and how many people are required to do it.
