AI and jobs in 2026 is a story of slower hiring, selective layoffs and heated debate over cause and effect. Canva restructured 22% of its workforce, Goldman Sachs limited AI coding tools to engineers, and the Bank of England found firms using AI are cutting hiring more than firing. This guide brings the evidence together, with what workers and employers can do.
Key takeaways
- The clearest early effect of AI on work is fewer new hires, not mass layoffs, according to the Bank of England's survey of UK firms.
- Companies cite AI in restructures, but the links are often partly the reporters' reading, as with Canva.
- Firms estimate AI has lifted UK productivity only about 0.5% over three years.
- Employers are setting rules on who may use which AI tools, as Goldman Sachs did.
What the Bank of England found
Firms in the Bank's survey estimate AI has raised their productivity by around 0.5% over three years, and report close to zero effect on employment. Its regional contacts say AI is making firms less likely to hire or replace workers, but not much more likely to fire them. The Bank also cautions that other factors explain much of the recent productivity pickup. See our full report: Bank of England on AI productivity.
Layoffs and restructures
Design platform Canva said 1,271 jobs, 22% of its workforce, would be cut, changed or relocated as growth slowed. Bloomberg tied it to AI pressure while the company's own note did not name AI. Atlassian, WiseTech and Block also announced AI-linked cuts earlier this year. Read Canva's restructure and the AI question.
Employers drawing lines on AI tools
Goldman Sachs reportedly limited tools such as Claude Code and GitHub's coding assistant to its engineers after encouraging traders and bankers to use them. See the Goldman report.
Cost-cutting through AI
Revolut says it cut AI coding costs about 90% by self-hosting an open model; see the Revolut case. Cheaper tools make it easier for firms to try AI across more roles.
What workers can do
- Learn to direct and check AI tools, since judgment and review skills are in demand.
- Build specialist knowledge and client relationships that AI complements rather than replaces.
- If you are job hunting, expect fewer entry-level openings and highlight practical projects.
- Ask your employer which AI tools are approved and how output will be reviewed.
What employers can do
- Set clear role-based rules for AI tools and require review of AI-generated work.
- Measure real productivity gains, not just adoption.
- Plan training and redeployment before cutting roles.
Frequently asked questions
Is AI causing layoffs?
Some companies cite it, but evidence is mixed. The Bank of England finds the main effect so far is slower hiring, and other causes such as slower growth also play a part.
Which jobs are most affected?
Entry-level and routine roles in software and office work appear most exposed, but studies disagree on the scale.
How much has AI improved productivity?
Firms estimate about 0.5% over three years in the UK, though they expect more in future.
Sources: Bank of England, Bloomberg, Reuters and company statements, as cited in the linked AI Newsround reports.
