AI Hype Fuels Layoff Plans and Rising Workplace Distress Among Employees

A new Mercer survey reveals that 99 percent of CEOs expect AI initiatives to trigger layoffs within the next two years, with early‑career workers projected to be hit the hardest. Executives believe automation offers the highest return on investment, yet only a third think humans and AI can work together effectively. The trend has already contributed to the bleakest job market for young professionals since the pandemic, fueling widespread anxiety and declining workplace well‑being. Researchers are even proposing a new term, AI replacement dysfunction, to describe the growing psychological impact.

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