Employers expect AI to shrink workforce over coming year

11 Nov 2025

Research carried out by the Chartered Institute of Personnel and Development (CIPD) has suggested that one in six employers anticipate that artificial intelligence (AI) will shrink their workforce over the next year.

62% of these employers think that junior managerial, clerical, administrative and professional roles could be lost as a result of AI. 26% of large private sector firms expect headcount to fall.

The CIPD has called for urgent action to support people whose roles are most exposed to AI-driven changes.

James Cockett, Senior Labour Market Economist at the CIPD, commented: 'We need to see a stronger focus by the government and employers on longer-term workforce planning and investment in skills to help people use AI effectively in their roles or transition into different jobs or occupations as AI use grows.

'Jobseekers are already feeling the impact of slower hiring since employment costs rose in the last Budget, and measures in the Employment Rights Bill could make it even harder for employers to take on people with less experience and more development needs.'