Nearly half of supply chain organizations have reduced headcount over the past two years, primarily because of artificial intelligence adoption, according to new research from Gartner.
The survey found that 47 per cent of supply chains reduced staff levels by an average of 10.5 per cent during the period. Among organizations reporting workforce reductions, 66 per cent said cuts were concentrated at the entry level.
The research was based on a survey of 303 supply chain leaders across North America, Western Europe, Asia-Pacific and Latin America conducted between May and June 2026. All respondents represented organizations that had integrated AI into workflows to some degree.
According to the survey, top-performing supply chains are responding by increasing skill requirements for entry-level roles and assigning employees more analytical and decision-making responsibilities as AI becomes more integrated into operations.
Gartner said organizations that reduce entry-level hiring without redesigning roles risk weakening the talent pipeline needed to develop future supply chain leaders.
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