Former Google CEO Eric Schmidt recently stated that as artificial intelligence takes over administrative and managerial tasks, large companies will still be able to operate normally even with a workforce reduction of about 20%. He used a hypothetical company with 10,000 employees as an example, noting, "My guess is that several thousand of them are actually unnecessary."
This statement came from a podcast aired this week, where he spoke with Nicolai Tangen, head of the Norwegian Sovereign Wealth Fund. Schmidt mentioned in the program that when certain positions become unnecessary, companies must find ways to transition personnel in a "legal and humane" manner. He did not elaborate on specific operational pathways but framed this comment in the context of discussing layoffs.
Schmidt Believes AI Will Change Business Operating Models
Schmidt believes that large companies consume a significant amount of time coordinating between employees, departments, and managers. He recalled that during his tenure at Google, he spent 12 hours a day attending various meetings. In his view, artificial intelligence is expected to eliminate most of this coordination work. "These AI platforms can eliminate most of these coordination costs," he stated.
However, this does not mean that all positions will disappear. Schmidt made it clear that companies will still need outstanding inventors, salespeople, leaders, and employees responsible for external affairs. In other words, what is being replaced by artificial intelligence is more about the middle-layer connections and information flow, rather than roles that directly create value or make decisions.