The Josh Bersin Company
AI Eliminates Jobs At Intuit and UKG, But Not The Way You Thought
Jul 13, 2024
Layoffs at UKG and Intuit reveal a surprising twist in AI's role in workforce changes. CEOs highlight a ‘pre-replacement’ of human roles as they pivot towards tech investment. Underperformers were let go first, suggesting strategic moves to enhance team skills. The growing costs of AI are prompting a shift in resource allocation from labor to technology. This transformation raises questions for CEOs on future employment dynamics and the necessity for upskilling workers in an increasingly automated world.
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Quick takeaways
- The layoffs at Intuit and UKG illustrate a strategic shift towards AI, where underperforming employees are replaced to enhance overall workforce effectiveness.
- As companies adopt AI, there is a critical need for employees to upgrade their skills, emphasizing the importance of talent density in future job markets.
Deep dives
Impact of AI on Workforce Layoffs
Recent layoffs at UKG and Intuit have highlighted the financial pressures associated with implementing AI technologies in businesses. UKG announced job cuts amounting to 14% of its workforce, while Intuit followed suit with a 10% reduction. These layoffs are not primarily driven by AI taking over functions but rather arise from the high costs of developing and deploying AI solutions. As companies reallocate funds from human resources to support AI initiatives, they encounter challenges in balancing labor expenses with necessary investments in technology, leading to a reevaluation of personnel costs.
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