Two weeks ago, Intuit, the company behind brands like TurboTax , Credit Karma, QuickBooks Company, and Mailchimp, announced that it would be laying off 1,800 employees, or roughly 10% of its current workforce.

The bigger shocker was when they said they would be hiring for 1,800 new roles, in an effort to focus on AI investments.

Looks like a talent “swap”, isn’t it?

But it’s definitely not new, because over the last few months, there have been similar shifts in the market.

• SAP announced it would cut 8,000 jobs as part of a £1.7 billion restructuring program focused on internal and external AI applications.
• Google and Amazon are aggressively investing in AI, leading to layoffs in various divisions while developing new AI models and tools to enhance their capabilities.
• Meta and Cisco have also announced significant layoffs, emphasising the need for efficiency and the integration of AI in their operations

What are some insights we can get from all these layoffs? Is there something for us to learn?

So… What Does This All Mean?

Yes, while you may argue that most of the companies mentioned are in the tech space, the truth is that this trend will slowly affect other industries, too. The good news is that letting other industries spearhead changes means we get to observe and draw insights.

What do I get from all these?

Here are some of my thoughts:

Adaptability is Key

In today’s dynamic business environment, adaptability is paramount. Companies must be agile and willing to pivot their workforce strategies to stay relevant. The rapid adoption of AI is not merely a trend; it’s becoming a necessity for maintaining competitiveness. This shift is driven by the need to enhance efficiency, innovate faster, and meet the evolving demands of the market.

For instance, Intuit’s restructuring to cut 1,800 jobs and rehire in key AI areas is a clear example of this adaptability. This strategy allows Intuit to align its workforce with the future demands of the industry, ensuring it stays competitive and innovative. Similarly, SAP’s significant investment in AI and the accompanying workforce restructuring underscore the importance of adaptability in navigating technological advancements and maintaining a competitive edge

Reskilling is Crucial

Reskilling employees is essential in the current AI-driven landscape. As companies integrate AI technologies, the need for employees with new skills becomes critical. This not only helps in retaining valuable talent but also ensures that the workforce is equipped to manage new AI-driven roles.

SAP’s approach to reskilling is a prime example. The company announced a significant restructuring program that includes reskilling its workforce to adapt to new AI applications. SAP plans to invest €100 million in education to help employees transition to new roles, either within or outside the company. This proactive approach to workforce development ensures that SAP remains at the forefront of technological innovation while supporting its employees through the transition

Strategic Investment in AI

Strategic investment in AI technologies is vital for driving efficiency and innovation within companies. Organizations like Google and Amazon have shown the importance of such investments by aggressively developing new AI models and tools.

For example, Google has been reorganizing its divisions, including Pixel, Nest, and Fitbit, to focus more on AI capabilities. The development of its Gemini AI model and other AI tools illustrates its commitment to staying ahead in the AI race. Similarly, Amazon has been focusing on AI to enhance its operational capabilities and product offerings, such as through the development of the Amazon Q tool. These investments are not just about keeping up with technological trends but are crucial for maintaining a competitive edge in the market

Efficiency through AI

The integration of AI is fundamentally changing how businesses operate, leading to more efficient processes and the ability to quickly adapt to market changes. AI technologies enable companies to streamline operations, make data-driven decisions, and optimize various aspects of their business.

Companies that fail to embrace AI risk falling behind their competitors. For instance, Meta and Cisco have both announced significant layoffs but are simultaneously integrating AI to drive efficiency. By adopting AI, these companies can automate routine tasks, reduce operational costs, and focus on strategic initiatives that drive growth and innovation. This transformation allows them to remain agile and responsive to market dynamics

Workforce Transformation

The shift towards an AI-capable workforce involves both hiring new talent with specific AI skills and redeploying existing employees to more strategic roles. This transformation is critical for companies aiming to leverage AI for future growth.

Organizations like Intuit, Google, and SAP are leading the way in this transformation. By cutting jobs in areas that are less relevant and rehiring in AI-centric roles, these companies are ensuring that their workforce is aligned with future needs. This approach not only enhances their AI capabilities but also positions them to capitalize on new opportunities brought about by technological advancements. Redeploying existing employees into more strategic roles ensures that valuable institutional knowledge is retained while adapting to new technological requirements

Actionable Insights

But of course, what’s the use of insights if they are not actionable, right? I thought I’d leave you with 3 executables to consider over, so that your organization can effectively ride the AI wave.

1. Hiring and Redeployment

Focus on acquiring new talent with critical AI skills and redeploying existing employees to more strategic roles. Google’s reorganisation of its Pixel, Nest, and Fitbit divisions and its focus on AI tools serve as a prime example. The benefit of sourcing for new talents with existing AI skillsets means that the learning curve is greatly shortened, speeding up the hiring ROI as well.

2. Retraining and Upskilling

This might sound biased as Radiant Institute is a training provider, but it doesn’t change the fact that it’s important to invest in training programs to equip current employees with essential AI and advanced IT skills, preserving in-house knowledge while adapting to new technological demands. SAP, for instance, is investing €100 million in education to help employees transition to new roles within or outside the company.

3. Integrating AI Tools

Implement AI-driven tools to streamline operations, enhance decision-making, and improve overall efficiency. Amazon and Google’s development of AI models like Gemini and Amazon Q highlight their commitment to AI innovation. At Radiant Institute, our AI-infusion can be considered “lighter”, as we start by helping your current team members to speed up the execution of their “secondary tasks” (more in the next few weeks), to get them ready for bigger AI changes to their daily workflow.

Useful Links

Oh yes! If you want to read up more on some of the research I mentioned in this email, here are the links:

• Intuit to cut about 1,800 jobs as it looks to increase AI investments
• SAP restructuring inspired by AI potential says CEO, as 8,000 roles are eliminated
• Technology Layoffs Continue in 2024 Amid Global Rise in AI
• All the big tech layoffs of 2024

If you’ve found this article insightful, do forward it to any leaders you know.

Just like the internet, social media and 5G, AI is a trend that will forever change the way we work, and some say, the way we live too!