'Privately, CEOs say a third of workforce will be eased out'

Summary: A quiet warning is spreading through India Inc’s boardrooms. White-collar roles may be under siege. And the real danger? Most Indian households, even high earners, are financially unprepared. HNIs saving less than 20 per cent of income, rising household leverage, shrinking emergency buffers… the numbers tell a harsh story. But there is a way to gain financial stability.

This is a sober reminder from Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers.

Mukherjea has been speaking openly for months about how our workplace may get reshaped, possibly violently, by generative AI and automation.

In a recent podcast with Anshuman Sharma, he put it starkly: “My reckoning is technology will turn the tables on this paradigm. As generative AI becomes powerful, a lot of what constitutes (deep-thinking roles) will become automated.”

This isn’t vague futurism. Mukherjea pointed to real examples, including legendary coders at Microsoft being shown the door, and the immense transformation underway at global asset-management giant BlackRock. Its software, Aladdin, has been hailed as a precursor to an era where research and stock selection may move from analysts to AI packages.

And it isn’t just high-end roles. He has warned that low-paying repetitive jobs are also on borrowed time. The part that should make most professionals sit up is this: “Privately, CEOs of Indian firms tell us that almost a third of their workforce will gradually be eased out… and India will become a massive gig economy.”

Pause and let that sink in.

A third.

If this were happening in a country with robust financial preparedness, it would still be alarming. But India’s preparedness is patchy even among the wealthy.

A wealth survey that should wake us up

The India Wealth Survey 2025, covering 465 high-net-worth individuals (HNIs) across the country, offered a sobering look at how fragile even high-income households are.

• 43 per cent of HNIs (earning above Rs 50 lakh post-tax) save less than 20 per cent of their income.
• The number is even worse among those aged 30–45.
• Two out of 10 have a poor understanding of basic investment options.
• 14 per cent lack an emergency fund, despite high incomes.

And these are the HNIs.

If we go one layer down, the picture darkens further. RBI data shows that household financial liabilities have surged 102 per cent since 2019-20. While part of this is home purchase, household financial assets rose only 48 per cent, meaning borrowings are rising twice as fast as savings.

Indian households are, in short, becoming more leveraged and less prepared.

And now comes the possibility of widespread job displacement.

At this point, yes, it does feel like doom and gloom. But this is also the point when we should do some soul-searching and figure out ways to fortify our future.

How to secure our future amid the uncertainty?

Jack up your savings rate. While this is less talked about, saving more from our salary is the only way we can protect ourselves.

Despite all the ominous stats, there’s one ray of light. Investments in mutual funds have jumped from 2.6 per cent in 2019-20 to 13.1 per cent in 2024–25, as per our central bank. That’s a sixfold jump.

But we need to understand the importance of saving for a rainy day, especially with looming threats of job losses, job friction and underemployment. We need to understand how critical the savings rate is to gain financial stability.

What you should do

If you want to build a buffer and long-term wealth, here’s a guide.

1. Pay yourself first

The golden rule is to save before you spend.

• Automate investing the moment your salary arrives.
• Target at least 25–30 per cent of your monthly income.
• Wealth always comes before lifestyle.

This is your first firewall.

2. Build an emergency fund

At least six months of expenses, preferably nine, kept in:

• A liquid fund
• Arbitrage fund, or
• Sweep-in FD.

No risky assets. No “but the returns are low” argument. This money is insurance of sorts, not an investment.

And yes, there’s no point stashing your cash in a savings account, as interest rates in prominent banks can be even less than the inflation rate.

Also, if indeed, India turns into a gig economy, a healthy emergency fund can be of great use. That’s because the buffer will help you build your only defence against the volatility of a gig economy.

Last but not least, an even more substantial emergency fund can enable you to take an unpaid internship, pursue a certification, or pivot careers while the automation storm passes.

3. Invest in mutual funds for the long run

If you’re new and have not been saving:

• Begin with a flexi-cap fund
• Or an aggressive hybrid fund

Start a monthly SIP and invest each month.

4. Don’t chase returns, chase consistency

Wealth isn’t created by timing markets or picking hot stocks. It’s created by a high savings rate, patience and time in the market.

Savings rate is more important than investment returns

Your savings rate matters more than your returns.

This may be the most important truth in personal finance: A high savings rate beats high returns.

If you save only 5 per cent of your income—even with 20 per cent returns—you will not build meaningful wealth. But someone saving 30–50 per cent—even at modest returns—will outrun you by miles.

Here’s how savings rate affects your retirement timeline:

Your takeaway? The more you save, the faster you win your financial freedom and the faster you escape the clutches of job uncertainty.

The bottom line

Jobs will change. A third of the workforce may shift to gig roles. Automation will make some skills obsolete. Market cycles will come and go.

But one thing stays constant: Your ability to save, plan and prepare.

If you control your savings rate, build buffers and invest consistently, you don’t need to fear what CEOs are whispering.

You will be ready.

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Also read: Will 77% Indian families retire poorer than they should?

This article was originally published on November 18, 2025.