McKinsey found that almost 80% of the world’s biggest companies are using AI in at least one part of their business. In the UK, about a third of medium-sized companies are doing the same.
Since May 2022, the number of online job ads in the UK has dropped by 31%. Jobs most affected by AI have seen a bigger fall… down by 38%. This is for jobs like software development, legal work, finance, design, and data jobs. In jobs that are less affected by AI, ads have dropped by 21%.
Also, the general job market has slowed down. McKinsey reported that vacancies went down from 1.3 million to 700,000 between May 2022 and May 2025. Unemployment is expected to reach 4.8% by the end of this year. Rising staff costs, higher taxes, and economic uncertainty are making employers think twice before hiring.
Are Things Harder For Young Job Seekers?
Young people looking for work are having a tougher time, because they are dealing with fewer job openings, stronger competition, and a drop in low paid jobs that are often used to get just a foot in the door. So, jobs like retail, hospitality, care work, and customer service.
Youth unemployment has risen from 10.9% to 14.3% since 2022. This is worse than the overall rise in unemployment. Even jobs that used to be common for graduates are now harder to get, and employers often prefer hiring people with more experience.
It’s also become harder to find low-skilled jobs, even though many young people take these while job hunting. These roles aren’t heavily affected by AI, but they’ve still dropped off, partly due to weak customer spending and higher wages.
What Can People Do To Protect Themselves?
According to a LiveCareer survey, nearly 60% of UK workers think they’re more likely to be made redundant this year. And with big companies like Tesco, Sainsbury’s and Morrisons cutting staff, that fear isn’t misplaced.
NerdWallet UK shared advice for people who want to be better prepared. They mentioned things like checking monthly spending and cutting what isn’t needed, paying off debts, putting together emergency funds and of course checking things like notice periods and redundancy pay.
Emma Gosling from Octopus Money said it’s best to sort out debts while you still have a regular income, as it gets harder once unemployed. Financial advisor Matt Beck added that people should avoid making big money decisions, like giving away large sums or overpaying mortgages, until they’ve settled into a new job.
What Can Employers Do Differently?
McKinsey says businesses should keep hiring junior staff even while using more AI. Holding off on entry-level jobs now could leave them struggling to find skilled workers later.
Instead of simply cutting costs, employers could look at how to mix AI tools with human work. This could mean updating job roles, training staff, and deciding which tasks machines should handle and which still need a person. If done properly, it can save time without losing the value people bring to the job.
Keeping up early career hiring during times like this could help companies stay steady and prepared for what comes next.
What Do Experts Advise Workers To Do?
Experts have shared more ways for works to stay prepared amid these layoffs. Here’s what they have to say…
Our Experts:
- Ikum Kandola, Founder, TheAX.ai
- Sacha Herrmann, CFO, Soldo
- Colin Cooper, Co-Founder and Co-CEO, Illuminate XR
- Marina Davidova, Co-Founder and Managing Partner, Davidovs Venture Collective (DVC)
- Chris Parker, UK Country Director, SThree
- Liz Sebag-Montefiore, Director and Co-Founder, 10Eighty
- Cheney Hamilton, Lead Researcher, FusionWork Project, Bloor Research Group
- Steve Hill, CEO and Vice-Chancellor, Walbrook Institute London
- Florian Douetteau, Co-founder and CEO, Dataiku
- Amy Knight, Business Commentator, NerdWallet UK
- Evan Reiss, VP, Head of Marketing, Foxit
- Steve Kelly, VP of Method and Content, Orgvue
- Ronni Zehavi, CEO and Co-Founder, HiBob
- Matt Weston, Senior Managing Director UK & Ireland, Robert Half
- Rebecca Carr, CEO, SmartRecruiters
Ikum Kandola, Founder, TheAX.ai
“Amid the job cuts we’re seeing across the UK and US – particularly in tech and finance – a clear pattern is emerging. It’s not just about which roles are disappearing, but which ones are evolving. The people most at risk are often those who haven’t yet adapted their skillset to include AI. But that also means there’s a huge opportunity for those who do.
You don’t need to be an engineer to stay ahead – you just need to understand how to use AI to enhance your work. Whether that’s speeding up analysis, improving decision-making, or freeing up time for more strategic thinking, those who learn to work with AI will be the ones who remain valuable. This isn’t about replacement – it’s about reinvention.”
Sacha Herrmann, CFO, Soldo
“Since the NI hikes were announced seven months ago, businesses have understandably prioritised cost-cutting to stay afloat. The latest data shows hiring is at a record low since the pandemic, with 1 in 4 firms planning redundancies – clear signs that many are hitting pause on growth.
“But blanket hiring freezes and redundancies can backfire long-term. Instead, CFOs and finance should look beyond short-term cuts and focus on smarter spend management. With modern, AI-driven finance tools, businesses can get real-time visibility into costs, spot inefficiencies and make more strategic decisions.
“Now more than ever, it’s critical for UK businesses to prioritise productivity and scale efficiently. Aligning financial planning with workforce strategy – like hiring in cost-effective regions or optimising output – can help manage rising costs without stalling growth or weakening teams.”
Colin Cooper, Co-Founder and Co-CEO, Illuminate XR
“Job cuts in tech and finance, both in the UK and the US, are a wake-up call. Big names like Microsoft, Meta, and Google are letting go of people in roles being automated and they’re doing it to redirect budgets toward AI.
“To stay in the game, develop skills that tech can’t replicate: critical thinking, creativity, curiosity, and emotional intelligence. But don’t stop there learn to combine them with tech tools like AI. Be the person who uses AI to do your job smarter, not the one who gets replaced.
“Most importantly, don’t wait until layoffs hit. Watch where your industry is heading. Retrain now, even in small chunks. Become the bridge between human insight and AI efficiency. That’s how you future-proof your career.”
Marina Davidova, Co-Founder and Managing Partner, Davidovs Venture Collective (DVC)
If you look at where agentic AI is rolling out, you won’t see mass layoffs. What you’ll see is people moving from low-value work to higher impact work, with AI picking up more of the “grunt work”.
“AI doesn’t displace human workers. Other humans with AI do. The question isn’t whether AI will eat your job — it’s whether you, your company, or your region will be the ones wielding AI, or the ones getting left behind. The future will be written by the leaders who stop waiting for permission, stop clinging to old processes, and start architecting businesses that are AI native from the ground up. Don’t sleep on AI, or you’ll wake up obsolete.
“At Davidovs VC, AI is the backbone of how we operate and scale. We’re a community-powered venture capital firm investing in early-stage AI startups, and we’ve also reimagined our own operations from first principles and through the lens of artificial intelligence. Our proprietary stack uses AI agents to replace traditional analyst functions — from sourcing and evaluating startups to drafting memos and surfacing actionable insights for our LP community.
“What’s worked well? Automating standard VC workflows has freed us to focus on high-leverage decision-making and relationship-building. We’ve eliminated the need for a traditional analyst team: our AI tools generate deal memos in minutes, maintain real-time visibility across 100+ investments, and match founders with the right LPs in our network based on live data. It’s allowed us to operate with radical transparency and speed — which, in today’s venture landscape, is a competitive advantage.
“Of course, it’s not without challenges. Building a flexible AI stack that works for a community of 160+ LPs — all with different expectations, schedules, and strengths — has taken iteration. AI can process data; it can’t (yet) build trust. That’s where the human layer still matters: structuring incentives, fostering engagement, and ensuring a “community feel” in a tech-driven environment.
“Our advice? Start by treating AI as a co-pilot, not a magic bullet. Think from first principles. Some processes can be eliminated, some — fully automated and scaled with agents, some — made faster or cheaper, enabling people to focus on the human touch — building trust and relationships with founders and LPs. Technology can scale your impact — but authenticity sustains it.”
Chris Parker, UK Country Director, SThree
“The rise in UK job seekers signals a shift, but also a chance to act. While overall hiring may be slowing, the need for STEM talent is still high – particularly in engineering, construction and technology sectors.
“The UK has a deep pool of highly skilled STEM professionals, yet it is underutilised. The UK trains more engineers than almost any other country, but we don’t give them the environment to thrive. We have the skills, but we’re not turning them into industrial strength.
“To harness this, we need a sharper national focus on joining-up investment and coordination to turn that talent into delivery at scale. That means agile hiring, targeted training, and a stronger bridge between education, industry, and government policy.”
Liz Sebag-Montefiore, Director and Co-Founder, 10Eighty
“In the face of ongoing job cuts across the UK tech and finance sectors, and a broader reshaping of roles due to AI, staying ahead in the job market means being both proactive and adaptable. For professionals, that starts with regularly refreshing and extending your skill set. In particular, developing digital literacy, data confidence, and AI fluency will be essential, even for roles that are not traditionally tech-based. Employers are increasingly looking for people who can combine sector expertise with the ability to work alongside emerging technologies.
“Equally important is nurturing your professional network and personal brand. Many opportunities never make it to a jobs board – they come through recommendations, internal moves, or being visible to the right people at the right time. Whether you’re in a role or between roles, maintaining an active presence on platforms like LinkedIn, engaging in industry events, and staying in touch with mentors or former colleagues can open doors and provide early insight into shifts in your sector.
“While UK job cuts in tech and finance are significant, particularly in London’s fintech scene and among traditional banks undergoing digital transformation, the US has seen even sharper cuts in certain tech giants and start-ups. However, both markets are realigning rather than collapsing; and those who can pivot into growth areas like cybersecurity, green tech, or AI-integrated roles are finding opportunities amid the change. The key is to stay future-focused, keep learning, and position yourself as someone who adds value in a transforming landscape.”
Cheney Hamilton, Lead Researcher, FusionWork Project, Bloor Research Group
“Amid recent tech and finance layoffs, it’s easy to assume jobs are vanishing, but through the FusionWork research project at Bloor Research, we’re seeing something different: roles aren’t disappearing, they’re being radically reshaped.
“Take tech, for example. Programmers as we knew them are becoming obsolete. AI can now write the code. What’s emerging is the Prompt Engineer, someone who partners with AI, guiding it through creativity, clarity, and intent. It’s no longer about knowing Python. It’s about knowing what to build, how to instruct and why it matters.
“This shift is why we emphasise four core human skills that will determine employability in the AI era: creative thinking, critical thinking, emotional intelligence and leadership.
“Employers are no longer hiring for task execution; they’re engaging for outcomes. And with 70% of the 2030 UK workforce already in work (over 50% of them aged 50+), we must also ask: how do we ensure experienced, non-digital-native workers can show these capabilities? How do we ensure they’re not left behind?
“While the US tech sector reacts with mass cuts, the UK has an opportunity to lead in ethical workforce redesign—if we reimagine what work is, and who it’s for.”
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Steve Hill, CEO and Vice-Chancellor, Walbrook Institute London
“Job cuts in the UK tech and finance sectors reflect a broader shift driven by economic pressures and rapid AI adoption – trends we’re also seeing in the US, though the UK market tends to move more cautiously. With AI tools replacing entry-level and routine tasks, candidates now need to go beyond the basics to stand out.
“Staying ahead means being proactive. Upskilling in areas where human judgement, creativity, or emotional intelligence are essential – such as strategy, communication, or ethical decision-making – can give candidates a critical edge. At the same time, jobseekers must learn to navigate an increasingly automated recruitment process. Many roles now receive hundreds of applications, with AI bots often doing the first round of CV screening. This means it is essential to tailor CVs with relevant keywords, simplify formatting, and use tools like LinkedIn Premium to benchmark their profile against job descriptions.
“Finally, resilience and adaptability are key. Career paths are becoming less linear, and employers value candidates who can show they’ve grown through uncertainty. Whether you’re transitioning between industries or returning to study, showing that you’re future-focused and learning-driven is one of the best ways to stay competitive.”
Florian Douetteau, Co-founder and CEO, Dataiku
“Businesses are racing to deploy AI, slashing costs and automating basic tasks in the name of efficiency and productivity. This race to automate repetitive, manual tasks could have a severe, unintended consequence, though: it is quietly erasing the roles that once served as vital entry points for graduates and apprentices. As these entry-level roles are increasingly replaced by AI automation, we are at risk of sidelining an entire generation from taking up foundational jobs, potentially locking them out of the workforce before they even have the chance to begin.
“Whilst AI might be helping businesses to a short-term win with increased efficiency, it could also see a generation locked out of work before they even get started. This isn’t just a hiring problem, it’s a talent time bomb that could cost companies their future leaders, innovators, and skilled workforce. Businesses urgently need to ask a hugely important existential question: ‘how can we harness AI without burning the bridge for tomorrow’s talent?’
“Organisations need to adapt roles, ringfence key opportunities, and rethink automation. If they don’t start thinking about the hiring implications of new technology, in five years from now they may be struggling with a talent drought of their own making.”
Amy Knight, Business Commentator, NerdWallet UK
Why are jobs at risk?
“The adoption of AI can save businesses time and money enabling them to do more with less.
“AI can write code, do complex calculations and provide financial forecasts in a matter of seconds, saving hours of workers’ time battling with spreadsheets.
“Consequently, certain roles may be increasingly at risk, particularly coders, data analysts, and employees working in company finance departments.”
New research by NerdWallet UK: Jobs in the IT sector are more at risk than in other industries
“NerdWallet UK’s latest business survey found that 40% of business owners of IT firms spend 6-10 hours per week on AI setup and management, including automating tasks.
“Across all industries, only 20% of business owners invest this much of their working week into using AI, suggesting that IT sector jobs could be replaced with AI sooner than other industries. 95% of IT business owners are using AI on a weekly basis, compared with 78% across all sectors.
“The larger the firm, the more likely these jobs are to be replaced by AI.”
NerdWallet UK’s survey of 500 business owners in Britain revealed that:
“Small businesses making under £25,000 revenue each year barely touch AI, averaging less than 1 hour per week.
“AI management jumps sharply when businesses reach £50,000 in revenue, with business owners spending more than 6 hours per week on average on learning, testing, or implementing AI tools in order to automate tasks.
“Companies earning more than £11million are spending over 9 hours per week on AI automation, on average, suggesting dedicated resourcing and more complex automation ecosystems.
“Financial management is an invisible overhead, costing business owners precious time and money, which could otherwise be directed towards boosting sales and developing a strategy for growth.
“By embracing AI, business owners and senior leaders can free up their time for tasks that will help them scale faster and increase profitability.”
Amy’s tips to stay ahead of the job market amid cuts
Swallow your anti-AI pride
“Even if you have personal reservations about AI, or are nervous about using it, it’s important to show a willingness to adopt new tools at work.
“Take advantage of any AI training your company offers and ask to shadow colleagues who use it regularly in their roles. By demonstrating that you can learn fast and share best practices, you’ll boost your confidence as well as your value to the firm.”
Upskill yourself
“To protect your future career, consider going one step further – sign up for an online training course or ‘AI bootcamp’, and look for opportunities to get an accreditation on your CV.
“Upskilling now could help secure your current position for longer, while making you more employable to other companies if job cuts are on the cards.”
Play around with AI in your personal life
“Workers in tech and finance may feel most at risk of being replaced, because GPTs can produce the same output that takes them hours or days in a matter of minutes. However, human initiative and creativity remain hugely valuable to companies.
“If your responsibilities at work don’t leave much room to experiment with AI, try experimenting outside of work. You could stumble across an application that your employer has yet to discover, making you more valuable to their business.”
What to do if you’re made redundant
“Business activity and investment are paralysed by economic uncertainty. Under these conditions, firms are reluctant to hire extra pairs of hands, and many companies have announced layoffs since April’s tax hike for employers.
“Even if your job is safe, planning how you can meet your financial obligations if you lose your income is a smart move.
“Clearing expensive debts (such as high-interest credit cards) can increase your financial security, making it easier to ride out a tougher labour market. Whilst paying down borrowing may increase your outgoings in the short term, consolidating debts while you still have a regular income could save you stress later on.
“If your job is not currently at risk but rumours of job cuts are rumbling through your workplace, it may be worth digging out your employment contract or speaking to HR to find out what your redundancy notice period would be. The length of your notice period may depend on your employment contract and how long you’ve worked at the company.”
Evan Reiss, VP, Head of Marketing, Foxit
“This is the era of the generalist. As traditional entry points into tech and finance – like graduate analyst roles – tighten, and AI reconfigures what employers look for, job seekers need to go beyond technical credentials.
“Soft skills like curiosity, adaptability, and critical thinking are fast becoming the real differentiators. AI will inevitably transform job functions, but it won’t replace the human instinct to ask the right questions, adapt under pressure, and synthesise complexity. Anyone can be taught to use AI tools – but what sets candidates apart is how they apply those tools in context. The people who thrive will be those who show how they blend human versatility with technological fluency.”
Steve Kelly, VP of Method and Content, Orgvue
“The UK labour market is experiencing an unprecedented decline. Orgvue’s analysis of ONS UK workforce data shows the payrolled workforce has decreased by 230,000 in 2025; this is largely driven by the number of redundancies taking place month-on-month. In fact, we’ve seen six consecutive months with over 100,000 redundancies – the first time since the pandemic this has happened. These layoffs are hitting hard, because outside pandemic months job vacancies are at a 10-year low. Taken together, this paints a bleak picture for workers and job seekers.
“And while many will point towards AI as the cause, AI is not replacing jobs, it is changing them, which is daunting for employees, but they must find a way to get onboard with AI in their roles, if they want to get ahead of the volatile job market. That means upskilling and working with AI, embedding it into daily workflows and processes, and becoming experts in gleaning value and productivity improvements from it. While many organisations will drive these initiatives, the onus rests on workers, as those able to show they’re capable of getting the most value from AI will be not just the survivors, but the winners, from this uncertain market.”
Ronni Zehavi, CEO and Co-Founder, HiBob
“Artificial Intelligence, like any technology, doesn’t operate effectively without human oversight. The workers who understand and leverage AI are proving to be the most resilient in today’s job market, especially as companies face ongoing cuts. Yet, our latest HiBob research shows that fewer than a quarter (24%) of workers use AI tools regularly in their daily workflow – something that must change, and quickly.
“Workers can only stay competitive by viewing AI as a tool, not a threat. When used to handle routine tasks, AI allows employees to focus on what makes them uniquely human – creativity, experience, adaptability, and judgement.
“Crucially, companies have a duty of care to make AI training available and accessible, not just to improve performance in current roles, but to prepare staff for the future of work. These skills will be essential for long-term employability and future-proofing business success. Upskilling in AI, whether supported by employers or driven by individuals, is no longer optional; it’s foundational to building a resilient workforce and a stronger economy.”
Matt Weston, Senior Managing Director UK & Ireland, Robert Half
“Staying ahead in a rapidly evolving job market is never easy, but it’s crucial for finance and technology professionals aiming to stand out in their field. Today’s AI-enabled world means that there is greater competition for work – not just from individuals with the skills and knowledge to capitalise on artificial intelligence tools, but also from AI itself.
“While traditional roles evolve or fade, there’s always space for exceptional people, those who pair technical expertise with soft skills, such as adaptability and emotional intelligence. And in a market where the future is hard to define, employers value individuals who can flex, learn and grow with the business. A particular edge lies in showing curiosity, especially around AI. Regardless of background or sector, a mindset geared towards development and change is fast becoming the differentiator of future-ready talent.
“Job market fluctuations are usually more acutely felt in mid-manager levels and below, but we’re seeing AI in particular impact every level of role, including the C-Suite. For example, our recent study – “Towards the C-Suite 2035” – revealed dynamic shifts in the boardroom in the next decade, thanks largely to AI. According to the report, 87% of C-suite leaders believe that knowledge of artificial intelligence will be essential by 2035.
“Reflecting this shift, 83% of executives anticipate the Chief AI Officer will become far more influential in the coming decade as firms look for leaders who can translate cutting-edge technology into real-world impact. Understanding these trends, both within your industry and beyond, will be key not just to landing the right role, but to building a career that lasts.”
Rebecca Carr, CEO, SmartRecruiters
“Given the current job market, it is hard for candidates to stand out. Tech and finance companies are under pressure to reduce head count, with AI-driven efficiency and cost-cutting at the top of business leaders’ minds.
“However, there is still demand for talent that can clearly show how they create value. Instead of simply listing skills or past job titles, successful candidates connect their experience directly to business outcomes. For example, rather than saying, “I worked on a marketing campaign,” they’d highlight their soft skills and explain certain tools they used to solve problems and increase lead conversion by 30% during the interview stage. By speaking the language of impact and showing how they’ve helped their teams save time, cut costs, boost revenue, and resolve issues, they justify why they are the best cultural and technical fit.
“Similarly, freelance contracts or gig roles can be great stepping stones to upskill, test new environments, and sometimes transition into permanent opportunities. Platforms like Upwork or Fiverr, and communities like Pavilion, are especially helpful for graduates and young candidates to build visibility and network with the right stakeholders across businesses – not just recruiters.
“In fact, cultivating and investing in industry relationships is one of the most impactful ways people can land the right opportunities. Just last year, we found that 17% of applicants in the UK were hired through referrals and internal moves. Alongside building new contacts, reconnecting with former employers and what we call ‘boomerang hiring,’ is increasingly common especially when there was a strong cultural fit the first time around. Such paths often offer a smart way to get noticed in an unpredictable labour market.”