René Janssen, the Founder and CEO of Lepaya, is a strong advocate for the potential of humans and businesses empowered by technology-enabled learning and development. In a year marked by significant layoffs at major tech companies such as Microsoft, Snapchat, and PayPal, various reasons have been cited, including efficiency gains during the pandemic and the plateauing of growth in 2021. Some companies, like Google, attribute their layoffs to the increasing adoption of AI and large language models.
While the increase in layoffs in the tech industry seems to align with investments in AI, a closer examination reveals that many companies are not reducing their overall workforce; they are simply reallocating resources by cutting in some areas while hiring teams with new skills. As a CEO himself, Janssen understands the difficulty of making decisions about layoffs and believes that a strategic approach to upskilling can help organizations avoid these situations. By identifying skill gaps early on and investing in upskilling programs aligned with industry challenges, companies can drive long-term growth and innovation while preserving vital organizational culture and knowledge.
With the rapid evolution of skills due to the impact of AI, business leaders are finding it increasingly challenging to keep pace with changes. The rise of AI is reshaping roles in various industries, leading to a decline in the shelf-life of skills to less than five years by some estimates. While some leaders opt for a “fire and hire” approach to address AI skill shortages, this may not be the most sustainable solution. Recruiting for new AI skills is not only costly and disruptive but also does not guarantee the availability of AI talent in the market.
To address AI transformation effectively, a shift from short-term fixes to long-term strategies is necessary. This begins with investment in upskilling and reskilling existing talent to fill AI roles and prepare workers in eliminated positions for alternative roles. The transformation also involves three key shifts in talent planning strategies: skills mapping and gap planning, continuous upskilling at all career levels, and recognizing the potential for reskilling to retain talent. Companies like Texas Instruments and IKEA exemplify the benefits of prioritizing skills development and reskilling as part of their organizational culture.
Moreover, by putting people’s skills at the forefront and viewing them as assets rather than liabilities, organizations can better navigate the challenges ahead, ensuring resilience and success amidst ongoing changes. While hiring will remain essential in some cases, the emphasis on upskilling and reskilling will be critical in facilitating talent evolution alongside technological advancements in the future of work. As industries brace for further layoffs, the ability of companies to adapt and evolve with a focus on talent development will ultimately determine their success in the rapidly changing business landscape.
