Former Google CEO Eric Schmidt suggests that artificial intelligence could lead to a 20% reduction in staff at large corporations. He identifies employees focused on planning and data coordination between teams, whom he terms glue people, as the most vulnerable to automation.
Schmidt illustrates this potential shift with a hypothetical company of 10 000 employees, where 2 000 positions could be eliminated. He notes that one company already implemented a 20% staff reduction targeting these coordination roles.
The former executive characterizes time spent in meetings as a coordination tax that AI can reduce. He lists invention, sales, leadership, and government relations as functions that will remain indispensable despite the rise of automation.
Data from the Kalshi prediction market indicates a 94% probability that layoffs in the US information sector will be higher in 2026 than in 2025. Investors are monitoring these trends as potential indicators of reduced operating expenses for companies adopting AI.
