A new survey of 2,400 global employees and executives reveals a troubling reality about enterprise AI adoption: 60% of companies plan to lay off workers who refuse to become proficient with AI tools, even as 75% of leaders admit their AI strategy is more theater than substance . The findings expose a widening gap between AI ambition and actual execution, with executives under intense pressure to deliver results they haven't yet figured out how to achieve.

Why Are Companies Threatening Layoffs When AI ROI Remains Elusive?

The paradox at the heart of enterprise AI adoption is stark: nearly all executives (97%) say AI has been beneficial, yet only 29% report seeing significant return on investment (ROI) from generative AI, and just 23% have seen measurable returns from AI agents . Despite this disconnect, companies are doubling down on workforce pressure. The survey, conducted by WRITER in partnership with independent research firm Workplace Intelligence between December 2025 and January 2026, included 1,200 C-suite executives and 1,200 employees across the US, UK, Ireland, Benelux, France, and Germany .

The threat of layoffs reflects executive desperation more than strategic clarity. Nearly half (48%) of leaders feel that AI adoption at their company has been a massive disappointment, yet 64% of CEOs fear losing their jobs if they fail to lead their organization through the AI transition . This pressure is trickling down to employees in the form of a two-tiered workforce system. Executives are actively cultivating a new class of "AI elite" employees, with 92% of C-suite leaders admitting to this strategy . These super-users are reported to be at least 5X more productive than employees who aren't embracing AI, and they're reaping the rewards: top AI users are 3X more likely to have received both a promotion and a pay raise in the past year compared to slower adopters .

The productivity gap is real. Top AI users save nearly 9 hours per week using AI tools, compared to just 2 hours per week for laggards, according to Dan Schawbel, Managing Partner at Workplace Intelligence . But converting individual productivity gains into company-wide ROI has proven far more difficult than executives anticipated.

What's Driving the Chaos Inside Organizations?

The survey reveals that AI adoption is creating significant internal friction. More than half of executives (54%) say adopting AI is tearing their company apart, and 56% report that it has created power struggles and disruption, representing double-digit increases from 2025 . The structural problems are equally concerning:

• Strategy Gaps: While 69% of C-suite leaders report that their company is doing layoffs due to AI, 39% admit they don't have a formal strategy in place to drive revenue from AI tools .
• IT and Business Misalignment: 78% of executives say AI has created tension between IT and other lines of business, with 55% reporting that AI use is a chaotic free-for-all at their organization .
• Organizational Redesign Pressure: 95% of executives say roles, titles, and team structures are changing because of AI, and 90% say they need to completely rethink how they evaluate and reward performance .

The generational trust gap adds another layer of complexity. 80% of Gen Z workers trust AI more than their manager for tasks like providing performance feedback and career advice, suggesting that traditional management hierarchies are being undermined by AI adoption .

How Can Companies Move Beyond Layoffs to Real AI Transformation?

Rather than using layoffs as a blunt instrument, the survey suggests organizations need to fundamentally rethink their approach to AI adoption. Experts recommend several concrete steps:

• Tie AI to Measurable Business Outcomes: Move away from efficiency-focused cost-cutting and instead focus on revenue growth and opportunity expansion, with clear metrics tied to business results.
• Empower Employees to Innovate Without IT Bottlenecks: Create governance frameworks that allow business teams to experiment with AI while maintaining security and control, rather than centralizing all AI decisions in IT.
• Implement Enterprise-Grade Governance for AI Agents: Establish documented roadmaps and control systems for autonomous AI systems, ensuring accountability and preventing rogue deployments that could cause financial or reputational damage.
• Deploy Change Leadership Both Top-Down and Bottom-Up: Combine executive commitment with grassroots employee engagement to build organizational buy-in rather than relying on threats.

"Layoffs are not a viable AI strategy. I'm on the front lines with WRITER's Fortune 500 customers, and the leaders who are putting in the work to radically redesign operations with human-agent collaboration at the center are the ones compounding their advantage in ways competitors can't replicate. AI transformation is ultimately about people, and the future belongs to the companies putting agent-building power directly into the hands of people closest to the work," said May Habib, CEO and Co-Founder of WRITER.

May Habib, CEO and Co-Founder, WRITER

What Are the Hidden Risks Companies Are Ignoring?

Beyond the ROI problem and internal chaos, companies face serious security and governance risks. 67% of executives believe their company has suffered a data leak or security breach because of an employee using an unapproved AI tool . Even more concerning, 35% of leaders admit they aren't confident they could shut down a rogue AI agent if it started causing financial or reputational damage .

Employee resistance is also more widespread than many executives realize. 29% of employees, including 44% of Gen Z workers, admit to sabotaging their company's AI strategy by entering company information into public tools, using unapproved tools, or refusing to use AI altogether . Executives recognize the danger: 76% say employee sabotage poses a serious threat to their company's future .

The fundamental issue is that companies are trying to force AI adoption without addressing the underlying structural, cultural, and governance gaps that slow progress. As Mina Alghaband, Chief Customer Officer at WRITER, explained, individual productivity gains from AI tools aren't enough to drive real business ROI . Companies need enterprise AI platforms that support deeper structural change across entire departments, not just individual workers.

The survey makes clear that the next phase of AI adoption will separate winners from losers. Companies that invest in proper governance, clear strategy, and human-centered change management will compound their competitive advantage. Those that rely on layoff threats and superficial AI strategies risk internal collapse and missed opportunities in an increasingly AI-driven economy.

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