AI expected to reduce workforce for large private sector firms

CIPD research findings

clock • 2 min read

Over one in four (26%) large private sector companies expect headcount to drop due to the impact of AI.

This is according to the Chartered Institute of Personnel and Development's (CIPD) Labour Market Outlook today (10 November), which revealed that 17% of employers expect a reduction in staff over the next year because of AI. The organisation surveyed 2,000 employers and saw that 17% of private sector companies overall expected workforce to reduce, compared to 20% in the public sector. Among those who expect headcount to lower due to AI over the next 12 months, 26% predicted to lose more than 10% of their employees. Close to two-thirds (62%) of firms that forecast AI to shrink...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Individual Protection

Finances negatively impacting young adults' mental health

Finances negatively impacting young adults' mental health

The Exeter research findings

Jaskeet Briah
clock 10 July 2026 • 2 min read
CII looks to reduce repeat disclosures for vulnerable customers

CII looks to reduce repeat disclosures for vulnerable customers

Launches cross-sector Vulnerability Data Sharing Taskforce

Jaskeet Briah
clock 08 July 2026 • 2 min read
UK lags behind global countries in managing chronic health: Zurich

UK lags behind global countries in managing chronic health: Zurich

Provider publishes Chronic Care Index

Jaskeet Briah
clock 07 July 2026 • 3 min read