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On October 22, 2026, former Google CEO Eric Schmidt offered the judgment that AI may eliminate about 20% of jobs at large enterprises. He said AI agents are expected to eliminate a large amount of coordination work at large enterprises, with those affected mainly being "glue employees" who do planning and data coordination. Citing a hypothetical company with 10,000 employees, he said as many as several thousand employees may not be needed, but companies must legally and humanely place transferred or departing employees. The report also mentioned that Cloudflare, despite 34% revenue growth, still announced in May this year the elimination of more than 1,100 positions, and its CEO said AI shortened the two-week preparation work of a roughly 20-person team before earnings reports to three minutes. This judgment is currently at the stage of public statement, with no further developments.
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Schmidt says AI may eliminate 20% of jobs at large enterprises
Source:Cailian Press
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Oct 22
Cailian Press
Former Google CEO Schmidt: AI Eliminates Coordination Costs, Large Companies Can Operate Normally Even After Cutting 20% of Staff
Former Google CEO Eric Schmidt believes that as AI takes over administrative and management functions, large companies can continue operating normally even after cutting about 20% of their jobs, because AI agents can eliminate a large portion of "coordination costs." Using a hypothetical company with 10,000 employees as an example, he said that as many as several thousand employees may not be needed, but companies must legally and humanely arrange transfers or departures for affected employees. Traders on the prediction market Kalshi believe there is about a 94% probability that layoffs in the U.S. information sector in 2026 will exceed 2025 levels.
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Former Google CEO Schmidt: AI May Eliminate 20% of Jobs at Large Enterprises
Former Google CEO Schmidt said on a podcast that AI agents are expected to eliminate a large amount of coordination work at large enterprises, potentially cutting about 20% of positions, mainly targeting "glue employees" who do planning and data coordination. He noted that Cloudflare, despite 34% revenue growth, still announced in May this year that it would cut more than 1,100 positions, and its CEO said AI shortened the two-week preparation work of a team of about 20 people before earnings reports to three minutes.