Ex-Google CEO Eric Schmidt warns AI may cut 20% of corporate jobs
Eric Schmidt, former Google CEO, told Norway’s sovereign wealth fund head Nicolai Tangen that AI could reduce large companies’ workforces by about 20%. Schmidt argued AI could automate much of the ‘coordination tax’—time spent on meetings and cross-departmental work—while preserving roles in invention, sales, leadership, and government relations.
Key points
- Eric Schmidt estimates AI could eliminate 20% of jobs at large companies by automating coordination tasks
- Cloudflare cut 1,100 jobs in May 2024 after AI reduced a 2-week report to 3 minutes with 20 fewer staff
- Schmidt warns companies must plan ‘legally and humanely’ for displaced workers as AI reshapes roles
Schmidt referenced a friend who cut 20% of his workforce amid growth, targeting ‘glue’ employees handling planning and data. The executive later wrote about the layoffs in the Wall Street Journal, matching Cloudflare CEO Matthew Prince’s 2024 essay. Prince detailed how AI slashed a two-week investor report process to three minutes, replacing a team of about 20 employees. Cloudflare laid off over 1,100 staff in May 2024 despite 34% revenue growth, framing the cuts as part of an AI-driven shift.
The story so far
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Ex-Google CEO Eric Schmidt Says AI Could Eliminate 20% of Jobs at Large Companies
finance.yahoo.com · 27 October 2026
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