Former Google CEO Eric Schmidt Says AI May Enable Large Staff Cuts

Artificial intelligence could enable large corporations to function efficiently with smaller teams, according to former Google CEO Eric Schmidt. Speaking on a podcast, Schmidt suggested that administrative and planning positions could face reductions as technology eases the burden of organizing work between departments.

He estimated that a hypothetical enterprise with ten thousand workers might include a couple of thousand unnecessary positions. Schmidt noted that an acquaintance running a growing business previously eliminated one-fifth of its workforce, targeting employees involved in planning and numerical tracking rather than product creation or sales.

Schmidt referred to the time spent organizing tasks as a coordination tax that AI platforms might eliminate. He stressed that while administrative duties could shrink, companies will still require inventors, salespeople, leaders, and staff to communicate with government regulators.

Employers should manage staffing transitions both legally and humanely, Schmidt advised. However, he also expressed skepticism about whether established businesses would alter their corporate culture and routines sufficiently to fully leverage AI systems.