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In this podcast I discuss the [recent layoffs at UKG and Intuit](joshbersin.com...) and how AI played a role quite different than we expected. In both cases the CEOs tell us that AI is the future and that they need large amounts of capital to invest in this new capability, thus they are “pre-replacing” human capital with technology.
In addition to this, as I discuss, both companies (Intuit in some detail) describe how “underperformers” were the first to go. So these are somewhat strategic moves to “re-hire” their teams and upgrade skills. And this also points out the very large cost of AI, which forces CEOs to redeploy financial resources from labor to capital.
Lots of subtle implications here, and I have to believe other CEOs will look at this and consider the same moves.
Additional Information
[UKG and Intuit Reductions In Force: Both Growth Moves](joshbersin.com...)
[AI in HR Professional Certificate Program](bersinacademy...., from The Josh Bersin Academy