Companies reduce headcounts unnoticed through AI, study finds

Many companies are now employing a subtle method to reduce their workforce by not filling vacated positions, according to a new study. This practice, dubbed "ghost downsizing," involves either redistributing tasks among existing staff or automating them with new applications and AI tools.

This approach differs from the overt layoffs often seen in larger corporations. The survey, conducted by Polish tech research firm Omni Calculator, found that nearly a third of employees reported a reduction in headcount without a corresponding decrease in workload or output. The report indicates that employers can maintain or even increase production without proportional headcount growth.

Notably, the research uncovered a significant disparity between employee and executive perceptions. While employees reported that 30 percent of their teams had shrunk with workload remaining the same or increasing, only 10 percent of surveyed executives reported similar patterns, highlighting a notable gap in observation.

The findings suggest that AI-linked workforce changes may be occurring through hiring pauses and workload redistribution rather than highly visible layoff announcements. While AI-driven mass layoffs garner significant attention, the slower, gradual changes within smaller businesses often go unnoticed.

However, employees and executives agreed on which jobs are less vulnerable to automation. Physical or hands-on work, strong interpersonal communication skills, creativity, and strategic thinking were identified as areas with lower risk of AI replacement. Conversely, remote work and lower-income jobs were perceived as more susceptible to automation, with workers earning under $60,000 annually more likely to report planning a career exit due to automation.