The job losses we feared? They’re no longer hypothetical.
✅ Commonwealth Bank in Australia just cut 45 call center jobs – replaced by a chatbot
✅ Atlassian let go of 150 customer service roles – to be replaced by AI
✅ Across the US and Europe, tech firms are shedding thousands
✅ One EA from a Big 4 firm told me their country manager declared, “All EAs will be replaced by AI within 5 years”
This is the reality of 2025: AI isn’t just augmenting jobs – it’s replacing them.
But here’s the question I can’t stop asking:
Are these cuts being made with a clear, future-fit strategy – or are they just a fast track to cost savings?
I get it. Cost savings are key in this time of Trump tariffs, consistent change, insistent inflation and undeniable uncertainty.
BUT…
🚨 Short-Term Win, Long-Term Risk?
For years we’ve been debating if AI will kill jobs. The answer now seems to be: yes, it can – and it is.
But the better question is: should it?
Many of the layoffs across the globe aren’t backed by a robust workforce transition plan or a clearly articulated AI strategy. They’re reactive. Opportunistic. A bet that AI will cut costs and no one will notice – or care.
But here’s what many leaders forget:
You don’t just lose headcount – you lose capability, context, and culture.
And once that’s gone, it’s incredibly hard to rebuild.
If you were involved in redundancies during the Global Financial Crisis 17 years ago then you know what I’m talking about.
📉 The ROI Reality Check
The data tells a sobering story.
A 2023 IBM report found enterprise-wide AI projects delivered an ROI of just 5.9% – while consuming almost 10% of capital budgets.
And a staggering 70–85% of AI initiatives still fail to meet their targets or are quietly abandoned. Many fall into what’s now known as “pilot purgatory” – exciting in theory, underwhelming in execution.
The problem? Too many companies jump on the AI bandwagon without asking:
- What business outcome are we solving for?
- Is our data ready? This is a big one!
- Are our people equipped to work alongside AI?
- Are our leaders equipped to handle a blended workforce?
- What roles could we reskill instead of replace?
The result: big spend, little gain, and deep internal distrust.
🧠 A Smarter Way to Approach AI-Driven Restructuring
This isn’t a call to stop AI adoption. If you’ve heard me speak you know my mantra (stolen from StarTrek…) Resistance is futile!
It’s a call to do it well.
Before you replace people with AI, ask yourself:
- Have we explored how to augment before we eliminate?
- Could the people we’re letting go fill different roles – now or in the near future?
- Have we upskilled our workforce to use the very tools replacing them?
- What message does this send to the rest of our team – and our customers?
Remember: what feels like a win on the balance sheet might be a loss in trust, innovation, and long-term capability.
💬 Final Thought
If you’re thinking about using AI to cut costs, consider this:
You can’t automate your way out of a talent strategy.
Use AI to elevate your people, not eliminate them.
👋 Over to You
Are you seeing these AI-driven restructures in your industry? Do you think companies are doing this the right way – or too fast, too soon?
Drop your thoughts below. I’d love to hear your take.
And if you’re interested in talking to me about helping you develop an AI strategy I’d love to chat. DM me.
