Goldman Sachs Survey Reveals Limited AI-Linked Layoffs

A recent survey by Goldman Sachs indicates that while AI-related layoffs have heightened concerns among job seekers and the Federal Reserve, the significant impact of AI on the labor market is yet to unfold.

The survey, which involved over 100 Goldman Sachs investment bankers, revealed that only 11% of their clients in sectors like technology, industrials, and finance are actively reducing their workforce due to AI. Instead, 47% of the bankers noted that their clients are leveraging AI primarily to enhance productivity and revenue, with only 20% focusing on cost reduction.

Notably, 31% of companies in the tech, media, and communications sectors are cutting jobs due to AI, reflecting the recent wave of mass layoffs by major tech firms.

Amazon recently laid off 14,000 middle managers as it prepares for a future with advanced AI and a streamlined workforce. Companies like Salesforce and Accenture have also contributed significantly to the AI-related layoffs in recent months. The situation has drawn attention from Federal Reserve Chairman Jerome Powell.

Although current layoffs are limited, bankers anticipate more significant reductions in the coming years. They predict a 4% general decrease in headcount over the next year, potentially escalating to 11% over the next three years.

Financial institutions are expected to experience the most substantial layoffs, with a projected 14% reduction in headcount over the next three years. The tech sector, despite its rapid AI adoption, may see slightly lower cuts of 10%.