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    Home»By Invitation»AI and job loss: Why HR leaders must prepare for a smaller workforce
    By Invitation

    AI and job loss: Why HR leaders must prepare for a smaller workforce

    No matter what narrative we choose, AI will impact jobs. So, it is time to prepare
    Guest WriterBy Guest WriterFebruary 26, 2026Updated:February 26, 20263 Mins Read42129 Views
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    For many months we have been hearing one reassuring line: AI will not take jobs. It will only change jobs. That sounds comforting but it is only half the story.

    Artificial intelligence is increasing productivity in a dramatic way. One person with AI tools can already do the work of six to eight people in many roles. Writing, coding, customer support, research, design, even legal drafts. Faster. Cheaper. With fewer errors.

    When productivity rises like this, companies need fewer people for the same output. This is simple economics. Some jobs will go. Some teams will shrink. Some departments will be redesigned.

    No matter what narrative we choose, AI will impact jobs.

    We have seen this before. When ATMs arrived, banks needed fewer tellers. Branches changed their structure. Some people moved into sales roles. Many left banking. When computers came into offices, typing pools and clerical roles reduced sharply. Work became faster, paperwork reduced, but fewer people were
    required for routine tasks.

    Technology creates opportunities, but transitions are painful.

    Artificial intelligence will do the same. It will create new jobs, but not enough for everyone at the same speed. Even if people upskill, efficiency gains mean companies still need fewer employees. That reality will ripple into society. Families will adjust spending. Education choices will change. Cities built around certain industries will feel pressure.

    We must be mindful and prepare!

    Human resource leaders cannot stay silent. Reskilling matters, but it will not save every role. Let us be honest. A mid-career employee may not become an AI engineer overnight. But they can learn automation tools, analytics dashboards, or advisory roles that use their experience.

    New jobs are already appearing, such as AI trainers, data quality reviewers, prompt designers, AI ethics specialists, and customer journey planners. People who understand both technology and human behaviour will stay relevant.

    At the same time, human strengths, such as empathy, communication, coaching, leadership, negotiation, creativity, become more valuable. Machines analyse data. They do not replace understanding or compassion.

    In our experience through Happiest Places to Work® happiness dialogues, employees are not afraid of technology itself. They are worried about uncertainty. When leaders avoid the topic, anxiety rises. When leaders speak openly and prepare teams early, people adjust better.

    Culture is tested in difficult moments, not in presentations. When AI leads to layoffs, do companies explain clearly? Do they train people before the crisis? Do they help employees find opportunities elsewhere? Do they treat people with respect?

    This is where organisations are remembered.

    Employees also have a role— to stay curious, learn AI tools, improve communication skills, build strong networks and not wait for their company to decide their future.

    Indeed, AI will bring efficiency, which is good for business. Productivity will rise. Costs will fall. However, the number of people required in many sectors will reduce. That will affect society in ways we are only beginning to see.

    Therefore, preparation matters. Governments must rethink skilling programmes. Companies must invest in early reskilling and transition support. Educational institutions must update courses quickly. Leaders must communicate honestly and plan with empathy.

    Yes, AI is coming faster than we expected. Let us accept the reality, prepare our people, and handle change with humanity. That is how organisations remain strong and workplaces remain truly happy.

    Raj Nayak

    The author, Raj Nayak, is founder of Happiest Places to Work®, a global initiative helping organisations build happy workplace cultures through happiness dialogues, research and leadership programmes.

    AI AI will change work artificial intelligence automated Coaching Coding communication compassion cost saving creativity customer support departments will be redesigned design empathy Employee employer even legal drafts. Happiest Places to Work happiness dialogues HR Human Resources increased productivity low errors machines replace understanding mindful Raj Nayak reassuring line Research Reskilling strong networks Workforce Writing
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