Gartner Report: AI job cuts are not saving companies money. What's really behind the cuts?

[jmbar2]

Last edited Sun May 10, 2026, 01:57 PM - Edit history (1)

Among organizations piloting or deploying autonomous business capabilities, approximately 80% report workforce reductions, according to a survey by Gartner, Inc., a business and technology insights company. However, those reductions do not appear to translate into return on investment (ROI).

The survey found that workforce reduction rates were nearly equal among respondents reporting higher ROI from autonomous technologies and those experiencing only modest gains or negative outcomes.

Autonomous business will continue to increase with the growing adoption of AI agents. Gartner forecasts AI agent software spending will reach $206.5 billion in 2026 and $376.3 billion in 2027. This is up from $86.4 billion in 2025.

Because autonomy will increase for both machines and people, and the need for people will go up, not down, Gartner predicts that autonomous business will be a net-positive job creator by 2028 to 2029, driven by new forms of work that AI cannot absorb.

“Long term, autonomous business will create more work for humans, not less. Lasting structural factors such as demographic decline and high-stakes, trust-dependent consumer moments will ensure human talent remains central to running, governing and scaling autonomous business,” said Poitevin.

https://www.gartner.com/en/newsroom/press-releases/2026-05-05-gartner-says-autonomous-business-and-artificial-intelligence-layoffs-may-create-budget-room-but-do-not-deliver-returns

Sounds like Gartner is trying to stave off a worker rebellion.


Here is another viewpoint.

- Companies are starting to eliminate 401K matches, stock options, PTO benefits for high-paid positions.
- They are claiming it is to improve business capabilities, invest in AI.
- The truth is, they are reducing the bargaining power of high-paid workers.
- The companies are rapidly emulating each other so that workers cannot get a better deal by changing jobs.
- The old days of high salary jobs, benefits packages, sign-on bonuses, is on the chopping block.

[Turbineguy]

1. The usual?

Pay at the top.