AI-generated illustration; not a photograph of the reported event.
- calendar_today October 28, 2026
Nearly Half of Canadian CEOs Foresee AI Increasing Growth With Fewer Employees
A recent survey conducted by EY-Parthenon, a division of the global accounting firm EY, polled 50 CEOs from major Canadian companies and found that 46% of those surveyed believe artificial intelligence (AI) will enable their organizations to reach growth goals while using smaller, more productive workforces. The findings indicate that many business leaders expect to boost output without adding to headcount or capital expenses as AI capabilities continue to expand.
Shift From Efficiency to Value in AI Workforce Strategy
Shane Dunn, managing partner at EY-Parthenon Canada, noted in the report that there is a shift happening among Canadian executives: “As productivity gains begin to materialize, I’m seeing the conversation shift from efficiency to value.” Dunn emphasized that CEOs increasingly point to demonstrable returns from AI investments, particularly in the form of higher productivity per employee.
The survey specifically targeted executives of large, typically publicly traded companies, most of which report annual sales of more than $1 billion (USD). Sectors represented ranged from consumer goods and finance to health care. Nearly a quarter of respondents reported yearly revenues between $10 billion and $49.9 billion (USD). The responses were gathered across August and September.
Layoffs and AI-Driven Workforce Changes in Focus
The release of the EY survey comes amid a wave of high-profile, AI-linked workforce reduction announcements. Microsoft recently offered voluntary buyouts to 60,000 of its 223,000 global employees as part of a broader cost-containment and AI investment effort. Meanwhile, the UK-based bank Barclays disclosed plans to cut 5,000 jobs—or around 5% of its workforce—as it looks to AI for greater efficiency and returns.
While Canada has not witnessed terminations on the same scale as these global firms, job cuts linked to AI are occurring. Toronto-based biomedical tech company BenchSci cited AI as the principal factor in more than 200 layoffs that began in 2024 and will continue into this year.
Experts Urge Caution Against 'AI Job Apocalypse' Fears
Despite concerns, economic researchers suggest it is too early to predict a sweeping 'AI job apocalypse.' Viet Vu, manager of economic research at Toronto Metropolitan University's Dais think-tank, told CBC News that there is currently no evidence of widespread negative effects on Canadian labour markets attributed directly to AI, including among youth.
Vu added that the greatest risk may lie in the future, as businesses adapt and evolve. He observed that jobs in construction and skilled trades appear less susceptible to AI disruption, but office and white-collar workers should prepare to develop new skills in response to workplace change.
Impact of AI Investments: Roles, Skills, and Organizational Change
The EY survey found that 82% of respondents expect AI’s biggest impact in the next three years to involve changes to employee roles, required skills, and workplace structure, rather than overall workforce size. This aligns with broader industry analysis. TD Economics, in a recent report, predicted a gradual shift in the job market as AI becomes more prominent, with task automation unlikely to translate to sudden, widespread job losses.
Senior TD economist Thomas Feltmate wrote, "The AI job apocalypse remains a risk scenario, not the base case." He cautioned against confusing the exposure of individual tasks to AI with wholesale job elimination, noting that "Jobs are collections of tasks that require different skills, levels of judgment, and forms of expertise."
Future of AI Growth and Canadian Workforce Productivity
As Canadian business leaders increase their AI investments, the focus appears to be not on drastic workforce reductions, but rather on leveraging technology for greater output and organizational flexibility. The path forward will likely involve both adaptation and training, particularly for those in roles more easily augmented or changed by AI systems.
Source: cbc.ca.
