Thirty-six percent of CMOs said they anticipate cutting head count in the next 12 to 24 months by using AI or eliminating redundancies, according to a new survey by executive search firm Spencer Stuart. It was based on interviews conducted in November with about 90 marketing leaders, according to The Wall Street Journal.
The outlook is more severe at large companies. Nearly half, 47%, of respondents at companies with $20 billion or more in revenue expect workforce reductions over that period, while 32% said they had already cut staff this year. The pressure is largely coming from the top. Thirty-seven percent of marketers at the largest companies said their CEOs and chief financial officers expect cost cuts of at least 20% within two years.
Richard Sanderson, who leads Spencer Stuart’s marketing, sales and communications officer practice, said the cuts reflect rising demands to show tangible returns on heavy AI investments. However, a separate survey by advisory firm Teneo found that most CEOs have yet to see the expected savings or performance gains from AI spending.
CMOs who have avoided layoffs have trimmed costs elsewhere, including reducing agency work, cutting freelance budgets and eliminating creative roles. While some firms are creating specialized AI roles, only 4% hired new staff in the past year.
