Eric Schmidt predicts AI could eliminate 20% of corporate roles

Former Google CEO Eric Schmidt suggests that artificial intelligence could lead to significant workforce reductions in large corporations, potentially cutting up to 20% of staff. He specifically identified “glue people”—employees responsible for planning, coordination, and moving information between teams—as being most at risk.

Schmidt noted that much of his own tenure as CEO involved a “coordination tax,” consisting of long hours spent in meetings to keep an organization connected. He argues that AI platforms can now automate these administrative and management tasks. Using a hypothetical firm of 10,000 employees, Schmidt estimated that approximately 2,000 positions could become unnecessary.

While predicting cuts in middle management and coordination, Schmidt maintained that certain roles remain indispensable, including inventors, salespeople, leaders, and those managing government relations. He urged companies to find legal and humane ways to transition workers whose roles are displaced by the technology.