The contradiction is stark: companies are announcing massive layoffs while simultaneously planning workforce expansion. Nearly 40 major companies have eliminated jobs in 2026, with some explicitly citing artificial intelligence as the reason. Yet a new survey of over 2,200 business leaders reveals that 60% expect their workforces to grow, not shrink, and most believe AI will redesign jobs rather than eliminate them entirely. This tension between short-term restructuring and long-term growth expectations reveals a fundamental shift in how enterprises are approaching AI transformation.

Why Are Companies Laying Off Workers Right Now?

The layoff wave is real and accelerating. Amazon eliminated 16,000 corporate roles in January 2026, followed by additional cuts in May. Atlassian cut 10% of its workforce, affecting about 1,600 employees. Cloudflare announced plans to reduce its global workforce by roughly 20%, affecting more than 1,100 workers. British American Tobacco is cutting 9,000 jobs, about one-fifth of its total workforce.

What distinguishes 2026's cuts is the explicit AI connection. Angi, the contractor listing platform, cut around 350 jobs "in light of AI-driven efficiency improvements," expecting to save between $70 million and $80 million annually. Cloudflare executives noted that the company's use of AI climbed more than 600% over three months, forcing a structural rethink. Block, Coinbase, and Standard Chartered have all cited AI's impact as a key reason for workforce reductions.

A World Economic Forum survey found that 41% of companies worldwide expected to reduce their workforces in the next five years because of AI. Yet the same survey found that jobs in big data, fintech, and AI are expected to double by 2030, suggesting the disruption is temporary and skill-dependent.

So Why Do Leaders Expect Workforce Growth?

The JLL 2026 Future of Work Survey, conducted from January to April 2026 with over 2,200 C-suite and commercial real estate leaders across 21 countries, paints a different picture. The majority of senior business leaders expect their workforces to grow, not shrink. More importantly, 60% expect AI to reinvent human roles rather than replace them.

The most AI-advanced organizations are leaning into this growth strategy. These companies are utilizing AI as a workforce augmenter and focusing on strategic expansion. They are hiring full-time employees, investing in entry-level talent, and actively redesigning roles to be enhanced by AI rather than eliminated. This approach acknowledges that some jobs will still be cut, but the net effect is growth and transformation rather than contraction.

"The public conversation around AI has been dominated by its impact on jobs and our research reveals that most companies are focused on the opportunities that come with AI. Most forward-thinking leaders aren't just buying technology; they are investing in their people. They are pursuing a strategy of human-machine enhancement to create additional roles, boost productivity and drive sustainable growth," said Neil Murray, CEO of Real Estate Management Services at JLL.

Neil Murray, CEO of Real Estate Management Services at JLL

What's Creating the Execution Gap?

The disconnect between layoffs and growth expectations reveals a critical execution problem. While 78% of survey respondents expect AI to drive significant changes to their real estate and workforce strategy, only 31% are actively preparing to redesign spaces for human-AI collaboration. Just 15% have reached the optimization stage of AI adoption.

Most organizations remain in early stages, with 46% focused on tracking AI trends and 40% analyzing potential impacts on their operations. This creates a holding pattern where companies are making immediate cost cuts while waiting to understand long-term implications. The result is a mismatch between current actions and stated future intentions.

How to Navigate the AI Workforce Transition

• Invest in Reskilling Programs: Organizations should proactively develop training programs to help existing employees transition into AI-enhanced roles rather than assuming displacement is inevitable. This builds internal capability while retaining institutional knowledge.
• Clarify Role Redesign Strategy: Rather than simply cutting headcount, define which roles will be augmented by AI, which will be eliminated, and which new roles will be created. This clarity helps employees understand their future and reduces uncertainty during transitions.
• Address Skills Gaps Systematically: Skills gaps in AI, analytics, and emerging technologies are cited as the top barrier by 36% of leaders. Organizations should map current capabilities against future needs and invest in closing gaps through hiring, training, or outsourcing.

Where Is the Talent Coming From?

A critical challenge is finding the skilled workers needed for AI-enhanced operations. A Multiplier report on the global talent squeeze found that 87% of surveyed U.S. small and medium-sized businesses now consider global hiring a necessity rather than a competitive advantage. This shift is driven by AI talent shortages and immigration constraints.

The numbers are striking: 60% of business leaders report that rapid AI adoption is creating demand for technical capabilities they currently lack. Meanwhile, 76% report that H-1B visa restrictions are directly influencing workforce planning, accelerating a shift toward remote-first international hiring.

However, global hiring introduces new complexity. Only 21% of surveyed small and medium-sized businesses report proactively managing cross-border employment compliance. Nearly one-quarter frequently struggle to satisfy regulatory obligations. The report found that 82% of organizations either have failed or expect to fail to onboard an international employee because of compliance, payroll, tax, or legal hurdles.

What Does This Mean for Enterprise AI Strategy?

The layoffs and growth expectations are not contradictory; they reflect different phases of AI adoption. Companies cutting jobs today are optimizing for immediate efficiency gains. Companies planning growth are preparing for the next phase, where AI-augmented teams will drive new capabilities and revenue opportunities.

The challenge is that most organizations are stuck between these phases. They lack the skills, change management expertise, and organizational alignment needed to move from cost-cutting to growth-oriented AI strategies. Skills gaps in AI and analytics, limited change management expertise, organizational silos, and measurement challenges all compound the problem.

"We are seeing a fundamental shift in what defines a high-performing company. It's no longer just about market position, size and scale; it's about becoming an AI-powered enterprise with the adaptability and organizational readiness to transform effectively amid continuous disruption," said Peter Miscovich, Global Future of Work Leader at JLL.

Peter Miscovich, Global Future of Work Leader at JLL

The companies succeeding in this transition are those that view AI not as a tool for workforce reduction but as a catalyst for role redesign. They invest in their people, build change management capability, develop measurement tools, and strengthen cross-functional collaboration between real estate, human resources, and technology teams. These organizations accept that some capability investment may not align perfectly with eventual strategy but create adaptive capacity for the future.

For business leaders, the message is clear: the AI transformation is not about choosing between layoffs and growth. It's about managing the transition from one organizational model to another, with short-term efficiency gains funding long-term capability building and workforce expansion.