René Janssen, the Founder and CEO of Lepaya, is passionate about leveraging technology-enabled learning and development for both personal and business growth. Many tech giants, including Microsoft, Snapchat, and PayPal, have recently announced significant layoffs. While some attribute this to increased efficiencies during the pandemic or a leveling off from strong growth in 2021, others like Google claim it is due to the adoption of AI and large language models.
The increase in tech industry layoffs seems to coincide with AI investments, leading to fears that as AI grows, more jobs will be lost. However, closer examination reveals that many companies are not reducing their overall headcount but are rather cutting back in certain areas as they hire teams with new skills. As a CEO myself, I understand the difficulty of making these decisions, as layoffs are never the first choice and can lead to reflection on alternative options.
In light of the rapidly evolving skills landscape driven by AI, business leaders are finding it increasingly challenging to keep up. As AI reshapes roles across industries and technologies take over tasks and roles previously seen as secure, the shelf life of skills is decreasing. Predicting the future is becoming more challenging, leading some companies to resort to tactics like “fire and hire,” laying off employees perceived as unfit for the evolving landscape while hiring new talent with AI-based skills.
While AI adoption may result in the loss of certain jobs, it also creates a demand for related skills, offering organizations the opportunity to strategically upskill their existing workforce rather than resorting to layoffs. By investing in training and development to address AI transformation, businesses can build more adaptable and resilient teams over time. This approach requires a shift from short-term fixes to long-term strategies that prioritize continuous upskilling at every career level and identify where reskilling can help retain talent within the organization.
Leaders must start by mapping out necessary skills and addressing any gaps in the current workforce. The focus should be on continuous upskilling tailored to individual capabilities and future industry trends, as well as recognizing where reskilling can help retain valuable talent. By investing in skills development from the beginning, organizations can prepare their teams for changes in the tech landscape. Ultimately, the future of work will be determined by people, not technology, and organizations that prioritize upskilling and reskilling will be better equipped to adapt to the changes ahead and remain resilient in the face of industry disruptions.
