A study by Orgvue found 55% of companies regret AI-driven layoffs; 33% saw voluntary exits post-AI; executives cite lack of understanding and uncontrolled use as key concerns. Klarna reportedly rehired support staff after AI replacement.
55% of businesses admit wrong decisions in making employees redundant when bringing AI into the workforce. Falling expectation among business ...
Klarna regrets replacing 700 employees with AI, now rehiring humans after customer service failures- Klarna, the popular Swedish fintech ...
The report found that instead, AI can enrich automatable jobs by freeing up employees from tedious tasks to practice more complex skills and ...
A significant majority of companies that conducted employee redundancies citing the implementation of artificial intelligence now report retrospective concerns regarding those decisions, according to a study by Orgvue. The analysis, which surveyed nearly 1,200 executives across North America, Europe, and Asia, found that 39% of large companies implemented redundancies in conjunction with AI deployment. Of that subset, 55% acknowledged that the redundancy decisions were incorrect.
The study also revealed that AI integration frequently coincided with voluntary employee departures, with one-third of surveyed companies reporting staff self-selecting out of their roles following AI deployment, obviating the need for employer-initiated termination in those instances.
Executive perspectives on AI integration remain marked by uncertainty and apprehension. Approximately half of executives expressed concern regarding the uncontrolled use of AI within their business operations. Data indicated that at least 35% cited a lack of AI-specific experience and knowledge, while 38% stated they did not fully comprehend the potential business impact of AI.
Furthermore, workforce planning in the context of AI remains inconsistent. One in four executives indicated uncertainty regarding which specific job functions are most likely to benefit from AI integration. Concurrently, 30% reported being unaware of the roles most susceptible to automation at present. In response to these dynamics, 80% of companies plan to implement supplementary training programs to equip employees with the skills necessary to effectively utilize new AI tools.
Oliver Shaw, CEO of Orgvue, stated that the current environment represents a "worst global skills shortage in a generation" and characterized employee dismissal without a defined workforce transformation strategy as "reckless" according to a press release dated January 2025 available on their website.
Case examples illustrate the complexity of AI integration and workforce impact. In January, Sebastian Siemiatkowski, CEO of Swedish fintech company Klarna, stated and amplified via media reports on platforms like Telegram, that the company had replaced 700 customer support personnel with an AI system, anticipating future full job automation within that function. However, reports distributed via platforms like Telegram indicate Klarna has subsequently initiated hiring processes for support staff, suggesting the AI deployment did not fully meet service quality requirements.
Related issues concerning employee perception of AI tool usage have also been reported via channels like Telegram, alongside analysis regarding specific job categories potentially subject to AI-driven automation as discussed on platforms like Telegram.
π More Than Half of Companies That Laid off Employees Due to AI Regret Their Decision Among nearly 1,200 executives from large companies in America, Europe, and Asia surveyed by Orgvue analysts, 39% made employees redundant as a result of deploying AI. Of those, 55% admit they made wrong decisions about those redundancies.
π Every third company did not even have to fire anyoneβemployees were leaving on their own because of AI deployment.
π About half of executives fear the uncontrolled use of AI in their business. At least 35% complain about a lack of AI-related experience and knowledge, and 38% admit that they still do not understand how AI would affect their business.
π One in four executives is uncertain which roles would benefit most from AI. At the same time, 30% remain unaware of the positions most vulnerable to automation today. As a result, 80% of companies plan to offer additional training to help employees use these new tools more effectively.
"We're facing the worst global skills shortage in a generation and dismissing employees without a clear plan for workforce transformation is reckless," warns Orgvue CEO Oliver Shaw.
π³ In January, Sebastian Siemiatkowski, the head of Swedish fintech Klarna, announced that the company had replaced 700 support staff with AI, predicting full job automation in the future. However, the startup has recently started hiring people again because AI could not provide quality service.
**More on the topic:
π Over 60% of Employees Hide Their Use of AI Tools from Their Managers
π What Jobs Can ChatGPT Really Replace?
news #survey @hiaimediaen
55% of businesses admit wrong decisions in making employees redundant when bringing AI into the workforce. Falling expectation among business ...
Klarna regrets replacing 700 employees with AI, now rehiring humans after customer service failures- Klarna, the popular Swedish fintech ...
The report found that instead, AI can enrich automatable jobs by freeing up employees from tedious tasks to practice more complex skills and ...
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