By the Numbers: How to talk about AI and layoffs

The rise of generative AI has spurred two different reactions in the world of work.

On one side, you have people who believe AI will help spur innovation at work,free people up to lean into their creativity and empower them to reallocate time to strategic tasks. On the other, you’ve got people who fear that Pandora’s box has been opened and AI is going to come for their jobs, putting employees out of work and automating whole functions.

The latter of these viewpoints underpins the need to discuss the implications of AI on job security and employee engagement at work. When big changes can alter the reality of work, leaders, and communicators need to be ready to talk about them.

According to KPMG’s 2024 CEO Outlook, 68% of American CEOs felt that generative AI was a top investment priority, despite the economic headwinds in the current environment. Interestingly though, only 39% of the same CEOs said that their employees had the right skills to harness the power of AI, and 34% felt that the data they had on hand was safe and ready for AI use.

This seems like an enthusiastic endorsement of AI, despite the gaps to fill. It’s clear that business leaders think AI is the future, and much sooner rather than later. What’s not as clear is their plan to address it with their employees.

But when you look at this attitude against another recent survey of employees on AI attitudes from job placement platform ResumeTemplates things begin to shift a bit.

• 30% of business leaders said their companies replaced employees with AI this year.
• 35% of business leaders said they plan to replace employees with AI in 2025.
• 87% of business leaders said AI would be beneficial for job candidates.

While a bit less than half of the leaders polled in the ResumeTemplates study felt that layoffs were coming in 2025 due to AI, it leaves open the question of what will happen next, or how to prepare. With nearly 40% of respondents saying that AI-based layoffs are on the horizon and less than a quarter saying that they don’t believe job cuts are on the way due to technological advancements, a conversation needs to be had.

How to talk about shifting job security with AI

The specter of layoffs complicates things a bit. Comms pros and leaders should consider the following when addressing the connection between AI and layoffs.

• Transparency is important. Remember, you’re dealing with people’s livelihoods. If you’re cutting jobs because you’re automating processes, tell your people that. If you try to bury facts or deflect, your employees will see the real play pick up on it. That stands to hurt your employer reputation and any efforts to retain employees.
• Maintain a human touch. Though AI isn’t intrinsically human, the impacts of it are. Be empathetic to those affected by the layoffs, and thank them for their contributions. When possible, share resources to help them land on their feet. Your employees are your single greatest resource. AI is a helpful tool, but employees are what make your culture what it is. A way of marrying AI and valuing your employees could come from AI-centric upskilling as a means of job security.
• Chart the path forward. If there is a layoff planned, have structures in place to support those who remain. If new processes are automated, show your people how they affect them and how they function. Reorganizations are opportunities to reconnect with your employees to figure out what they need to perform their best.

In the midst of an AI revolution, and it’s tough to know exactly what’s coming next. But as communicators and leaders, you’re accountable to your employees. AI may define the next era of the workplace, but your people define your companies. By being upfront with your people about the implications of AI and talking about how they can work with it rather than against it, you stand a better chance of moving into this new era with engaged, happy employees.

For more insights on how AI is impacting the comms industry, check out our AI Horizons Conference in Miami in Feburary 2025.

Sean Devlin is an editor at Ragan Communications. In his spare time he enjoys Philly sports and hosting trivia.