As firms go AI-native, scrutiny grows over AI-linked job cuts

As expertise corporations more and more cite AI-led transformation whereas reshaping their workforces, specialists are questioning whether or not the march towards changing into “AI-native” displays real enterprise reinvention or has grow to be a handy justification for layoffs.

Globally, a number of expertise corporations have tied workforce adjustments to AI-led transformation. Firms together with Atlassian, Block, Meta, IBM, and Oracle have cited AI-driven effectivity positive factors, organisational restructuring, or a shift towards AI-first operations whereas reshaping their workforces.

“’AI-native’ has grow to be one of the crucial overused phrases in enterprise at the moment. Whereas it appears like a vacation spot that corporations have already reached, in actuality, for many organisations, it’s nonetheless an aspiration. A really AI-native firm has not merely deployed a number of AI instruments or automated remoted duties however redesigned how work will get carried out from workflows and decision-making to working fashions and buyer supply. By that definition, only a few corporations are AI-native at the moment,” Husain Tinwala, CEO, upGrad Rekrut, defined.

In keeping with the upGrad Rekrut Tech Expertise Panorama Report, solely 16% of organisations have redesigned workflows end-to-end round AI. The remaining 84% are introducing AI inside current buildings moderately than remodeling them altogether.

This distinction, Tinwala added, issues as a result of an rising variety of workforce reductions are being linked to AI transformation. If an organisation has not essentially redesigned its operations, it turns into troublesome to attribute workforce reductions solely to AI-driven productiveness positive factors.

Neelabh Shukla, Chief Enterprise Officer, Careernet, echoed this, including that AI-native bulletins arriving with out corresponding particulars or demonstrated productiveness outcomes invite scrutiny. The organisations making this transition can present what they’re constructing, not simply what they’re promising and restructuring away from.

Workforce reductions are influenced by a mixture of things like financial situations, margin pressures, post-pandemic hiring corrections, altering enterprise priorities, and value optimisation efforts. Whereas AI could also be a part of the story, it’s not often your complete story.

“In earlier enterprise cycles, organisations defined restructuring selections by enterprise efficiency, market situations, or monetary realities. At this time, AI is usually a singular rationalization, even when a number of enterprise drivers are at play. Workers deserve a extra full understanding of those selections,” Tinwala shared.

In the meantime, Shukla mentioned, transparency practices are enhancing inconsistently. The extra progressive organisations are explaining the particular workflows being automated, the roles most certainly to evolve, and the reskilling pathways accessible. The hole is in distinguishing AI-driven change from different concurrent enterprise pressures. Organisations making that distinction assist staff and the broader market assess the change on its deserves.

“Most corporations gained’t publish whether or not the AI paid off earlier than they made the lower. They might be seeing the productiveness and the enterprise outcomes first. However most reviews point out that the transition fee from proof-of-concept to real-world deployment remains to be extraordinarily low. In lots of circumstances, the restructuring is arriving forward of the proof. And that’s self-defeating, as a result of the potential it is advisable make AI productive is the potential you danger slicing or scaring off once you transfer too early,” mentioned Anuj Agrawal, Founder & CEO of Zyoin Group.

Shukla argues that AI-native transformation can create worth for all stakeholders—boosting shareholder returns, enhancing buyer expertise, and enabling staff to maneuver into higher-value work by decreasing repetitive duties. On this view, AI is a productiveness driver that may result in extra significant employment if managed effectively.

Then again, Agrawal contends that whereas AI’s long-term advantages could finally prolong to staff and clients, the rapid positive factors are accruing largely to shareholders and management. He argues corporations have a duty to prioritise reskilling and redeployment over layoffs, treating staff as expertise to be transitioned moderately than prices to be lower.

Revealed on June 7, 2026