Key Takeaways
- 54% of companies say they have or will reduce employee compensation in 2026 due to AI.
- Similarly, 26% say they have or will lay off employees amid a shift toward AI.
- Looking toward the future, a full 94% say they “expect to reduce headcount as AI takes over more functions.”
The impact of AI in the workplace could be brutal for workers everywhere, a new study indicates, with over half of companies in the US saying they plan to reduce worker compensation by the end of this year, due to AI.
Not only did 54% of the surveyed companies say they would be reducing their pay, but another 26% say they plan to entirely lay off workers.
These insights come after years of white collar job reductions across the tech industry and serve as another reminder that our lengthy timeline of AI-related job insecurity has not yet come to an end.
Half of US Companies Plan Compensation Reductions
The new survey is out from ResumeBuilder.com, which polled 866 US business leaders to conclude that “54% of companies have or will reduce employee compensation to free up capital for AI spending in 2026.”
According to the report, this trend is set to continue for the foreseeable future, as “the vast majority expect further AI investment at the expense of employees.”
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Of the companies that are cutting back on compensation due to AI, opinions are mixed on the exact reason. 75% say AI offers a competitive advantage, while 74% specifically point to revenue growth thanks to AI tools.
In addition, 57% say they “risk falling behind competitors without significant AI investment.”
Bonuses May Be the First to Go
Bonuses are in danger across the largest amount of companies. Here’s how the various types of compensation being reduced, according to the report:
- Bonuses (61%)
- Equity or stock awards (60%)
- Raises (59%)
- Benefits (53%)
- Base salaries (43%)
It’s worth noting that these are all self-reported claims. We’ll have to wait to see if compensations really are reduced to this extent.
An Overwhelming Majority Plan on Future Layoffs
One last troubling statistic from the new report? 94% of the surveyed companies say they “expect to reduce headcount as AI takes over more functions.”
In other words, half of the companies may be planning compensation cuts in 2026 — but an overwhelming majority are planning on even more layoffs at some point in the near future.
Last year, we covered British computer scientist Geoffrey Hinton’s view that AI will “very likely” cause mass unemployment.
We’ve already seen plenty of headline-grabbing mass layoffs due to AI, from Accenture to Duolingo. Executives’ minds seem to be made up. They’re operating in lockstep, moving towards a goal of lowering headcounts while relying on AI to pick up the slack.
