Former Google CEO Eric Schmidt said artificial intelligence could allow large companies to operate with about 20% fewer employees by taking over administrative and management work. Schmidt estimated that a hypothetical company employing 10,000 people might not need a couple of thousand of those workers. Schmidt discussed the issue on the In Good Company podcast with Nicolai Tangen, head of Norway's sovereign wealth fund. Schmidt said companies must find legal and humane ways to transition employees whose positions become unnecessary.
Schmidt argued that large corporations spend excessive time coordinating employees, departments and managers. Schmidt recalled attending meetings for 12 hours a day while running Google, which is now part of Alphabet Inc. Schmidt said AI agents could remove much of that coordination work. Schmidt said companies would continue to need excellent inventors, salespeople, leaders and employees responsible for government relations.
Schmidt described a friend who eliminated 20% of the friend's company workforce despite rapid growth. Schmidt said the cuts affected employees responsible for planning and moving numbers around. Schmidt said the executive subsequently reported receiving death threats. Schmidt did not identify the friend but said the friend had written about the cuts in The Wall Street Journal.
The account closely resembles the experience of Cloudflare CEO Matthew Prince, who published an essay explaining Cloudflare's layoffs. Cloudflare announced plans in May to eliminate more than 1,100 jobs despite reporting 34% revenue growth as the company shifts toward AI. Prince characterized most employees affected by the layoffs as "measurers" responsible for management, compliance and administration. Prince said in a September interview that approximately 20 employees previously spent two weeks preparing investor documents ahead of earnings. Prince said AI shortened that process to three minutes.
Kalshi traders assign roughly 94% odds that U.S. information-sector layoffs in 2026 will exceed 2025 levels. Trading volume in the market is approximately $31.5 million. However, the market covers all information-sector layoffs rather than only layoffs resulting from AI. Schmidt doubts that most established businesses will undertake the organizational changes required to achieve AI productivity gains. Schmidt said almost none of the companies listening would make the necessary cultural changes. Kalshi and Benzinga have an existing agreement to collaborate on data.
Ex-Google CEO Eric Schmidt Predicts AI Could Cut 20% of Jobs
BenzingaShare
Summary
Eric Schmidt, former Google CEO, told the In Good Company podcast that AI could replace 20% of workers in big firms, especially in admin and management roles. He cited a friend who cut 20% of staff amid growth and mentioned Cloudflare CEO Matthew Prince’s AI-driven layoffs. Schmidt stressed the need for legal and humane transitions. Kalshi traders see 94% odds of higher U.S. information-sector layoffs in 2026. Meanwhile, MiCA and CFT regulations continue to shape the global compliance landscape for firms adopting AI and crypto technologies.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.