Canadian CEOs Use AI to Target Smaller Workforces

Nearly half of surveyed leaders expect to reach company growth goals with fewer staff through artificial intelligence.

Updated on Oct. 28, 2026 in Artificial Intelligence

Isometric editorial illustration featuring an office block and abstract digital lattice, representing corporate workforce transformation through artificial intelligence. — Canadian executives report that nearly half of firms plan to reach growth targets through AI-driven productivity gains rather than increasing staff headcounts. AI Illustration. Upload story photo >

Live Poll

Do you believe artificial intelligence will eventually reduce the number of job opportunities for your profession?

Data from an August and September 2026 survey of Canadian executives reveals that 46 per cent of CEOs plan to achieve growth targets with smaller workforces. This strategy focuses on leveraging artificial intelligence to drive productivity gains while reducing headcount.

Why it matters

Companies are increasingly looking to artificial intelligence as a primary tool to contain costs and improve output. By optimizing operations, leaders believe they can expand their businesses without the need for additional employees.

Eighty-two per cent of surveyed executives expect artificial intelligence to significantly alter employee roles, skills, and workplace organization over the next three years. These companies represent large, publicly traded firms with annual sales exceeding $1 billion US.

The players

EY-Parthenon

This global strategy consulting firm conducted the survey of 50 Canadian business leaders.

Microsoft

This multinational technology corporation recently announced large-scale workforce reductions linked to its artificial intelligence investments.

Barclays

This British multinational universal bank plans to cut 5,000 jobs as it incorporates new automated systems.

BenchSci

This Toronto-based biomedical company reduced its workforce by over 200 employees between 2024 and 2025.

TD Economics

This research division provides economic projections and analysis on market trends within Canada.

The details

Large corporations are already acting on these trends, with Microsoft offering voluntary buyouts to 60,000 employees and Barclays planning to cut 5,000 jobs as of October 2026. Locally, Toronto-based BenchSci laid off more than 200 staff members between 2024 and 2025.

EY collected survey results from Canadian CEOs in August and September 2026.
BenchSci implemented layoffs between 2024 and 2025.
Microsoft and Barclays announced staff reductions in October 2026.

The Tech Race

The adoption of artificial intelligence as a substitute for human headcount represents a fundamental shift in how large firms scale their operations. This trajectory replaces legacy growth models that prioritized expanding staff numbers with automated systems designed for long-term efficiency.

Employees across major firms may face increased pressure to adapt to changing roles as companies prioritize AI-driven automation over new hires. For the average worker, this means that developing new digital skills is becoming essential to maintain job security as employers look to reach growth targets with fewer people.

The takeaway

While AI offers companies a path to reach growth goals with smaller teams, the transition is expected to be a gradual adjustment rather than an immediate shock. Workers should anticipate that job descriptions and required skills will continue to evolve significantly over the next three years.