A new CEBR survey reported by the Financial Times shows that one in four large UK firms expect to reduce headcount because of AI and automation over the next few years. The finding is stark: 25 percent of big firms forecast net staffing cuts, with many expecting changes within 2 to 5 years and a sizable share anticipating action within the next 12 months. This development highlights growing concern about AI job cuts UK and the broader impact of automation and jobs on the future of work.

Why AI is prompting workforce change

Artificial intelligence and automation can perform tasks that once required human judgement or repetitive manual effort. Businesses are increasingly applying these technologies to document processing, payroll, customer queries and routine finance and HR tasks. Firms pursuing productivity gains see clear incentives to adopt automation, yet these choices drive workforce transformation that affects recruitment, retention and internal training strategies.

Key findings from the survey

• 25 percent of large UK firms expect net headcount reductions within a few years due to AI and automation.
• About 12 percent expect staffing increases, while roughly 37 percent expect no change in headcount.
• Around 60 percent of executives are rethinking hiring, reskilling and upskilling plans in response to AI.
• The most at risk roles are junior, administrative and routine back office positions, including HR administration, basic finance tasks and customer service handling standard enquiries.
• Many firms expect to see change within 2 to 5 years and a substantial group anticipate action within the next 12 months.

Implications for businesses and workers

The pattern suggests workforce composition will shift rather than disappear overnight. Employers are likely to automate repetitive tasks and redeploy human effort toward supervision, complex problem solving and roles that manage AI systems. That raises the need for systematic retraining, targeted upskilling and clearer talent management plans to preserve internal pipelines and reduce turnover.

Reskilling, upskilling and retraining as solutions

With roughly 60 percent of executives rethinking people strategies, successful transitions will depend on employers investing in retraining and upskilling programmes. Practical measures include modular training tied to measurable outcomes, apprenticeship style pathways into AI related roles, and partnerships with colleges and training providers. Framing reskilling as a strategic priority helps firms maintain morale and capture the productivity gains that motivated automation in the first place.

Policy and industrial relations

Trade unions have warned that staff cuts could worsen inequality and called for protections and large scale retraining. Business groups stress responsible AI adoption and urge government support for retraining and workforce transformation. A coordinated approach between employers, unions and government can reduce social disruption and help turn automation into an opportunity for better jobs rather than deeper inequality.

What leaders should do now

• Map current and future skills needs and identify roles exposed to automation.
• Design targeted reskilling and upskilling programmes tied to internal mobility pathways.
• Communicate openly with employees and unions about workforce planning and responsible AI adoption.
• Engage with government initiatives and training funds to scale retraining for affected workers.
• Monitor productivity gains and use measurable KPIs to evaluate the impact of automation on service quality and staff welfare.

Conclusion

The CEBR survey as reported by the Financial Times signals a meaningful shift: AI and automation are likely to prompt net job reductions in a notable share of large UK firms, with junior and back office roles most exposed. Businesses that pair automation with deliberate reskilling and upskilling strategies, and that support responsible AI adoption with clear communication and policy engagement, will be better placed to capture productivity gains while protecting workers and strengthening long term competitiveness in the UK.