AI, Not Recession, Threatens Jobs by 2026: Goldman Sachs Warns of Mass Layoffs

• AI, not economic recession, is projected to cause significant job losses by 2026, driven by companies adopting an 'AI-first' model for efficiency, according to a Goldman Sachs report.
• The impact, initially thought to be limited, will spread across sectors like consulting, banking, financial services, and manufacturing, affecting white-collar and middle-management roles.
• Companies are investing billions in automation, reducing human roles, especially those involving repetitive tasks, data processing, and basic analysis, despite AI's full productivity gains taking years.
• Investor perception is shifting; aggressive layoffs, once seen as cost discipline, are now questioned for long-term growth and innovation capability.
• Continuous skill development and adaptation are crucial for employees, as new roles in AI development, data governance, and ethical monitoring will emerge to replace traditional jobs.

Why It Matters: AI will reshape the job market by 2026, demanding continuous skill development for survival.