More than 23,000 jobs have been slashed or are set to go at just four of the biggest technology groups in recent weeks, demonstrating the speed at which artificial intelligence is moving from the boardroom to the office.
Amazon has confirmed 16,000 corporate jobs are to go in late January, WiseTech is cutting about 2,000 jobs, Block is cutting over 4,000 jobs and Atlassian this week announced plans to axe 1,600 jobs total upto 23.600 jobs.
An australian software firm said it plans to slash 10% of its workforce to redirect resources to artificial intelligence and enterprise sales, with 30% of those jobs in Australia.
In a memo to staff, chief executive Mike Cannon Brookes said: “It would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas.”
WiseTech has also conveyed a similarly stark message.
The logistics software group has claimed that with AI, tasks which used to take months to finish can now be completed in a day, and it is planning to reshape teams accordingly, with significant cuts to product, development and customer service teams.
Block has also told investors that a smaller team with access to AI tools can do more and better, a phrase which encapsulates the new corporate philosophy behind these layoffs.
That is not to say that the larger Australian labour market is in freefall.
The pressure is building, however, in whitecollar jobs particularly those that can be automated or completed more quickly with the assistance of AI.
The Reserve Bank has reported that firms anticipate a small decrease in staff levels in the short term as they adapt to the new technology, although modelling has suggested that jobs levels should increase in the long term.
Still, the advice from experts indicates the current job losses may only be the start.
According to the World Economic Forum, 41% of employers are likely to reduce their workforce if they can automate the work through the use of AI.
The message to employees is clear, the jobs market is not dying, it is changing.
