Workday lays off 1,750 employees, or about 8.5% of its workforce
In a Wednesday (5th Feb) memo to employees, published in a securities filing, Workday CEO Carl Eschenbach said the layoffs were necessary for ongoing growth efforts at the company.
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In a Wednesday memo to employees, published in a securities filing, Workday CEO Carl Eschenbach said the layoffs were necessary for ongoing growth efforts at the company — including a particular focus on artificial intelligence investments.
“As we start our new fiscal year, we’re at a pivotal moment,” Eschenbach wrote. “Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.”
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Workday aims to notify the majority of employees affected by the cuts on Wednesday. “I realize this is tough news, and it affects all of us,” Eschenbach added — encouraging employees to work from or head home for the day.
The maker of human resources software also disclosed that it expects to exit certain office space, but didn't specify a timeline or which locations may be impacted. Still, Eschenbach's memo notes that the restructuring will work to expand Workday's global reach by “investing in strategic locations.”
And despite the current layoffs, the maker of human resources software says that it still expects to continue hiring in certain locations and positions over the next year.
Workday estimates that it will incur between $230 million and $270 million in charges related to the restructuring plan — primarily in severance payments, employee benefits and other related costs. All employees laid off in the U.S. will be offered a minimum of 12 weeks of pay, with additional weeks based on tenure, Eschenbach said Wednesday, adding that affected workers in other countries will be offered packages based on local standards.
The job cuts at Workday arrive as layoffs continue across the tech sector — including from big names like Intel, Cisco and Apple over the past year — amid a broader wave of industry consolidation. Many companies have turned to restructuring as they grapple with how to stay competitive with evolving consumer spending, while also boosting AI-related investments.
Workday plans to release earnings results for its full 2025 fiscal year later this month. In the third quarter, the Pleasanton, California-based company posted a net income of $193 million and revenue of $2.16 billion — up from a net income of $132 million and revenue of $2.09 billion in the period prior.
Shares for Workday were up more than 2.5% by midday trading Wednesday.
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Meta Platforms, on Monday, kickstarted the process to terminate “low-performing” employees by notifying the job cuts as it scours for new talent to dominate the AI race.
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Meta notified laid-off employees via email and is providing severance packages to US-based staff, according to Bloomberg News, citing confidential sources. The severance includes 16 weeks of base pay, plus an additional two weeks for each year of service. Employees eligible for performance bonuses will still receive them, and stock awards will be granted as part of the upcoming vesting cycle later this month, the report added.
Reports say several employees who received positive ratings for their performance during the mid-year reviews were also handed pink slips. These employees were shocked to see their ratings being downgraded to "Meets Most" during the year-end reviews from "At or Above Expectations", making them eligible for the job cuts.
Kaila Curry, who worked as a Content Manager at Meta's San Francisco office, according to her LinkedIn profile, was one of the employees who was rated “exceeds expectations” rating in her mid-year review and was let go on Monday.
"I was placed on a project that multiple managers admitted had me ‘not set up for success’. I frequently asked for feedback and was always told I was doing a good job. I was never placed on a PIP, never given corrective feedback, and never properly mentored or provided clear expectations," she said in her LinkedIn post sharing the news.
Another employee Brittney Ball, who worked at the company for five years, according to her LinkedIn profile, was also laid off on the same day.
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Cognizant Technology Solutions, headquartered in the US, experienced a decline in its workforce during the December quarter, with a reduction of 10,700 employees compared to the same period last year and 3,300 fewer than the previous quarter. Despite this, the company anticipates increasing its headcount throughout 2025 as it grows. CFO Jatin Dalal expressed confidence in adding employees over the course of the year to support expansion.
Cognizant’s Workforce Trends: Attrition, Returnees, and Utilization Insights
The company concluded the quarter with approximately 336,800 employees. Attrition increased to 15.9% on a trailing twelve-month basis, reflecting a better demand environment and enhanced hiring capabilities. This rise in attrition aligns with trends observed across Indian IT firms in recent quarters. Additionally, the company’s utilization rate decreased by 2 percentage points to 82%. However, management highlighted that utilization improvements remained strong throughout 2024.
CEO Ravi Kumar S emphasized that Cognizant is witnessing a “return of returnees,” with 13,000 former employees rejoining the company in 2024, and an additional 10,000 expressing interest in coming back. This trend highlights the company’s strong talent pool and its ability to attract leadership.
Cognizant’s Workforce Trends and Market Position Amid Industry Shifts
In contrast, Cognizant’s rival Accenture saw its headcount grow for the third consecutive quarter, adding 24,697 employees to reach 799,000 in Q1 FY25. On the other hand, India’s top five IT services companies—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—reported a combined reduction of 2,587 employees in Q3 FY25, primarily due to the seasonally weaker period marked by furloughs and reduced hiring.
Although Cognizant experienced a reduction in workforce, it surpassed revenue expectations. The company has projected an annual revenue growth of 3.5% to 6% in constant currency terms for 2025, indicating optimism for the year ahead.
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Tears running down her cheeks, a female trainee from Madhya Pradesh pleaded with Infosys officials on February 7, "Please let me stay the night. I will leave tomorrow. Where will I go right now," after she was asked to vacate the Mysuru campus immediately , according to another trainee who, too, was fired by the IT services giant.
The two were among the around 400 trainees let go by Infosys on that day after failing evaluation tests three times in a row.
"We don’t know. You are no longer part of the company. Vacate the premises by 6 pm," was the response from an Infosys official, as claimed by the trainee.
Hundreds of trainees scrambled to find taxis and buses to head back to their hometowns. Many had joined Infosys nearly two and a half years after graduating, only to be terminated just months later. Fear and uncertainty loomed as they grappled with how to break the news to their parents on returning home.
Early morning on February 7, batches of about 50 trainees were called in with their laptops for a discussion, starting at 9.30 am. They were huddling inside a room guarded by security outside and bouncers inside.
“You are required to maintain confidentiality, hence please do not discuss this, or share this calendar invite with anyone,” read a mail sent to the affected trainees a day earlier.
The trainee mentioned above said Finacle (Infosys’ digital banking platform) employees were on campus and so were a few US clients. “Therefore, buses were used as shields to cover the area where we were being called and terminated one by one. We were escorted out in a way so as to not catch their attention,” the trainee said.
“This is cruelty, it is a big company, trainees fear speaking the truth,” another trainee who was asked to leave told Moneycontrol on the condition of anonymity.
Infosys, in a statement, said: “At Infosys, we have a rigorous hiring process where all freshers, after undergoing extensive foundational training at our Mysuru campus, are expected to clear internal assessments. All freshers get three attempts to clear the assessment, failing which they will not be able to continue with the organisation, as is also mentioned in their contract. This process has been in existence for over two decades and ensures a high quality of talent availability for our clients.”
Trainees, who spoke on the condition that they not be identified, alleged that the company made the eligibility criteria very stringent for the 2024 batch.
Fears still loom
They alleged that trainers had warned them beforehand that the exam would be designed in such a manner that a significant number of trainees would struggle to pass.
The fear still looms that about 4,500 trainees, who are still undergoing training, might meet a similar fate, sources said.
On February 14, about 450 trainees from the October 21 batch, selected mostly for system engineer roles, will sit their third attempt. It remains to be seen how many clear the exam and how many are terminated.
Evaluation, Passing Criteria
The evaluation and passing criteria for trainees is divided into different focus areas, with benchmarks that must be met to merit a completion.
For the “technology stream” trainees are required to achieve a minimum of 50 percent in each focus area, internal documents accessed by Moneycontrol showed. However, just clearing individual focus areas is not enough; an overall average score of at least 65 percent across all focus areas in the “technology stream” is mandatory.
A flashback: 2022
Over the past two and a half years, the freshers training programme has undergone drastic changes allege trainees.
In 2022, the process was more structured and provided enough time for learning. Cut to 2024, the syllabus has been majorly expanded and the completion time drastically reduced, making it nearly impossible for trainees to fulfill the required assessment.
In 2022, freshers had to go through two main testing phases — generic and technology stream. The generic phase itself had two assessments: FA1, which is Java, and FA2, which is Database Management System (DBMS). FA1 involved only one coding problem and some multiple-choice questions (MCQs), while FA2 required running just four queries in DBMS.
The passing criteria across was overall 50 percent.
There was no time limit for attempting the generic test — candidates could take it at any point within their six-month training period.
Even if someone failed the generic phase, they were still allowed to move on to the technology stream phase and continue their learning, sources said.
In many cases, trainees who failed were still promoted to meet company hiring demands.
2024, a whole new ball game
Fast forward to 2024, and the entire system was overhauled, making it much more challenging at a time when the IT industry was grappling with a challenging demand environment.
India’s second-largest software exporter sent offer letters back in 2022 but did not on-board the candidates after the company faced a slump. The delay, however, was an industry-wide issue. Fears of a looming recession in IT companies' major markets and the absence of discretionary spending led companies to pause hiring, leading to a multi-decadal decline in headcount.
IT companies, including Infosys, have since been slow on hiring. They gradually started hiring as the demand environment seem to turning around after almost one and a half years.
The structure remains the same — generic and stream phases — but the syllabus and passing criteria have changed dramatically, above sources rued.
In the generic phase, the two tests have been renamed as F1 (Java) and FA2 (DBMS).
F1 (Java) now covers Data Structures, Object-Oriented Programming, and Programming Fundamentals. Instead of just one coding problem, candidates now face three coding challenges— one each for Data Structures, Programming Fundamentals, and OOPS. Additionally, MCQs are included.
Each section also now requires a minimum of 65 percent to pass instead of a 50 percent average.
FA2, or DBMS, now requires candidates to run eight queries instead of four, further increasing the difficulty.
The syllabus for Programming Fundamentals is now around 120 hours long, while Data Structures is about 40 hours. The total syllabus requires 200 hours of study.
However, candidates are expected to study from 9.15 am to 5.45 pm in training, and to cover the syllabus, they would need an extra eight hours of self-study a day, which is practically impossible.
Similarly, DBMS training has been reduced to just 10 days despite requiring 100 hours of study.
The Impact
These sudden and excessive changes have resulted in a drastic increase in failure rates.
Of the 930 trainees that joined on October 7, around 160 passed in the first attempt and over 140 in the second.
Over 630 students failed by January 1, 2025 due to the increased syllabus and reduced time.
Previously, freshers were given up to three attempts for the generic phase and could still proceed to the stream phase. Now, trainees must clear generic first before moving to the stream phase.
Earlier termination rates were under 10 percent but now they have risen to 30-40 percent.
Unfair syllabus overlap
A major concern is that the same syllabus is being taught for different roles with vast salary differences, sources said.
System engineers, who earn about Rs 20,000 a month, are now studying the same syllabus as specialist programmers, who earn approximately Rs 70,000.
Previously, hiring exams were designed as per job roles — system engineer papers were simpler, as it was a support role. Now, they are forced to take the same difficult tests as high-paying specialist programmers, they said.
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Meta plans to lay off approximately 3,600 employees identified as low performers to raise performance standards. CEO Mark Zuckerberg confirmed the move, emphasizing extensive performance-based cuts. Affected employees will be notified by February 10. This follows previous waves of job cuts and policy shifts. Meta's shares fell after the announcement, reflecting investor concerns about the company's direction.
Meta (the parent company of Facebook, Instagram, and WhatsApp) is set to lay off approximately 3,600 employees identified as low performers, according to an internal memo first reported by Bloomberg. CEO Mark Zuckerberg confirmed the move in the memo, describing it as a strategy to “raise the bar on performance management and move out low-performers faster.”
The layoffs, affecting about 5% of Meta’s 72,400-strong workforce as of September, are part of what Zuckerberg called an “intense year” for the company. Employees in the United States will be notified of their status by February 10, with international employees to be informed later, AFP reported.
“We typically manage out people who aren’t meeting expectations over the course of a year,” Zuckerberg stated, “but now we’re going to do more extensive performance-based cuts during this cycle.” He noted that some employees who underperformed in the last period may be retained if there is optimism about their future contributions. Those laid off will receive “generous severance,” the CEO added.
The company plans to replace the outgoing employees with new hires later this year.
This is not Meta’s first wave of job cuts. The company laid off over 11,000 employees in November 2022 and cut an additional 10,000 jobs in subsequent months.
The announcement follows a series of policy shifts at Meta, including the elimination of its US fact-checking program, which had been criticised by conservatives as censorship. Zuckerberg also unveiled changes to content moderation policies, easing restrictions on divisive topics such as immigration and gender while loosening rules on hate speech.
Last week, Meta also announced reductions to its diversity, equity, and inclusion (DEI) team and scaled back related programs. The policy changes have drawn praise from Republican figures and criticism from Democrats, with some accusing Zuckerberg of aligning with conservative ideas ahead of President-elect Donald Trump’s inauguration on January 20.
Meanwhile, Zuckerberg speaking on the Joe Rogan Experience podcast last week, revealed that Meta and other leading tech companies are developing AI systems capable of handling complex coding tasks currently performed by human engineers.
He announced plans to replace midlevel software engineers with artificial intelligence by 2025, signaling a major shift in how the tech giant approaches software development.
Meta’s shares fell Tuesday following the layoff news, reflecting investor concerns over the company's broader direction.
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Meta CEO Mark Zuckerberg has raised fresh concerns about the future of developer jobs, revealing that artificial intelligence (AI) at Meta is already reaching the capabilities of mid-level software engineers. During a podcast with YouTuber Joe Rogan, Zuckerberg shared his vision for the role of AI in coding and the potential disruption it poses to the job market.In Short
# Mark Zuckerberg has raised fresh concerns about the future of developer jobs
# He revealed that AI at Meta is reaching the capabilities of mid-level software engineers
# He says AI at Meta and other tech companies could effectively replace mid-level engineers
Meta CEO Mark Zuckerberg has raised fresh concerns about the future of developer jobs, revealing that artificial intelligence (AI) at Meta is already reaching the capabilities of mid-level software engineers. During a podcast with YouTuber Joe Rogan, Zuckerberg shared his vision for the role of AI in coding and the potential disruption it poses to the job market.
He stated that by 2025, AI at Meta and other tech companies could effectively replace mid-level engineers who currently write code. This would represent a big shift in how tech companies approach software development.
"We will get to a point where all the code in our apps and the AI it generates will also be written by AI engineers instead of people engineers," he said. For context, Business Insider reported that mid-level software engineers at Meta currently earn salaries in the mid-six figures — a cost AI could significantly reduce.
Zuckerberg’s comments come at a time when other tech giants, such as Google and IBM, are also integrating AI into their operations, raising similar alarms. Sundar Pichai, CEO of Google, recently announced that over 25 per cent of all new code at Google is now generated by AI, with human engineers stepping in for final reviews. Meanwhile, IBM’s CEO, Arvind Krishna, revealed in 2023 that AI could replace up to 30 per cent of the company’s back-office roles. The trend, seen across different sectors, is sparking a debate about the future of traditional coding jobs.
Jobs of human engineers are at risk?
Zuckerberg’s latest announcement and Google's recent remark on AI completing coding tasks suggest that the role of human engineers is changing, potentially leading to fewer coding jobs in the traditional sense. Rather than spending time on routine tasks, engineers may need to focus on higher-level problem-solving and oversight of AI-generated code. As AI is more integrated into tech workflows, junior and entry-level coding positions might diminish, forcing aspiring developers to rethink their career paths.
However, it’s not all doom and gloom for engineers. AI’s growing role in code generation could actually empower coders to concentrate on more strategic and creative aspects of development. It is important to note that human engineers can't be replaced in the longer run because they can solve complex issues that AI alone cannot handle. As routine tasks are increasingly automated, the importance of these core competencies will grow, placing greater value on skills that complement AI.
This tech company has stopped hiring humans
Meta isn’t alone in its AI journey. Klarna, a leading fintech company, has also supported AI-driven automation, reducing its workforce by 20 per cent over the past year without hiring replacements. Klarna’s CEO, Sebastian Siemiatkowski, has openly stated that AI now performs nearly all tasks traditionally handled by human employees, signaling yet another shift toward an AI-dominated future.
The company, which previously had 4,500 employees, now has 3,500. This reduction happened naturally, according to the CEO, due to the 20 per cent annual attrition rate common in tech firms.
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The prospect of artificial intelligence (AI) replacing human workers is no longer a sci-fi fantasy—it’s becoming a reality. According to the World Economic Forum’s latest Future of Jobs Report, 41% of global companies are considering reducing their workforce by 2030, opting instead for AI-powered solutions.
The report highlights how advancements in AI are enabling companies to automate tasks that previously required human intervention. While this promises efficiency gains, it also raises concerns about the future of work and the human jobs at risk of becoming obsolete.
The survey, conducted among hundreds of large companies worldwide, reveals a dual approach to AI adoption. On one hand, 77% of organizations plan to reskill or upskill their employees to adapt to AI-enhanced workflows. On the other hand, 70% are looking to hire new talent specifically skilled in designing and implementing AI technologies.
Job roles that heavily rely on repetitive tasks or knowledge-based work are among the most vulnerable. Postal service clerks, executive secretaries, payroll clerks, graphic designers, and legal secretaries are cited as some of the fastest-declining roles, attributed to AI’s growing ability to perform tasks like generating original content and automating administrative processes.
The report notes this decline as evidence of AI’s “increasing capacity to complete knowledge work,” which includes creating text, images, and other outputs based on user prompts.
Despite the grim outlook for some roles, the rise of AI doesn’t mean the end of all human jobs. In fact, the report predicts a surge in demand for positions that require distinctly human skills, such as nursing and teaching. These roles rely on empathy, interpersonal interaction, and critical thinking—qualities that AI has yet to replicate effectively.
The trend underscores the need for workers to embrace adaptability and lifelong learning. Companies are prioritizing skill development to ensure employees can thrive in an AI-driven environment. Industries that successfully blend human creativity with AI efficiency may emerge as the big winners in this transition.
The report offers a clear message to businesses and workers alike: adaptability is crucial. As companies invest in upskilling programs and recruit talent with AI expertise, employees must also proactively seek opportunities to align their skills with the demands of the future workplace.
For roles like graphic design and legal support, the decline in traditional job functions could signal a pivot towards hybrid roles where AI assists rather than replaces human efforts. For instance, designers might focus on conceptualization while relying on AI to execute repetitive tasks.
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Synopsis
Global banks may cut up to 200,000 jobs in the next three to five years due to AI. Positions in the back office, middle office, and operations are most at risk. Customer services and know-your-customer roles may also change. AI tools are expected to increase productivity and revenue for banks.
Global banks are expected to cut as many as 200,000 jobs in the next three to five years as artificial intelligence encroaches on tasks currently carried out by human workers, according to Bloomberg Intelligence.
Chief information and technology officers surveyed for BI indicated that on average they expect a net 3% of their workforce to be cut, according to a report published Thursday.
Back office, middle office and operations are likely to be most at risk, Tomasz Noetzel, the BI senior analyst who wrote the report, said in a message. Customer services could see changes as bots manage client functions, while know-your-customer duties would also be vulnerable. “Any jobs involving routine, repetitive tasks are at risk,” he said. “But AI will not eliminate them fully, rather it will lead to workforce transformation.”
Nearly a quarter of the 93 respondents predict a steeper decline of between 5% and 10% of total headcount. The peer group covered by BI includes Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc.
The findings point to far-reaching changes in the industry, feeding through to improved earnings. In 2027, banks could see pretax profits 12% to 17% higher than they would otherwise have been — adding as much as $180 billion to their combined bottom line — as AI powers an increase in productivity, according to BI. Eight in ten respondents expect generative AI to increase productivity and revenue generation by at least 5% in the next three to five years.
Banks, which have spent years modernizing their IT systems to speed up processes and shave costs in the wake of the financial crisis, have been flocking into the new generation of AI tools that could further improve productivity.
Citi said in a report in June that AI is likely to displace more jobs across the banking industry than in any other sector. About 54% of jobs across banking have a high potential to be automated, Citi said at the time.
Still, many firms have stressed that the shift will result in roles being changed by technology, rather than replaced altogether. Teresa Heitsenrether, who oversees JPMorgan’s AI efforts, said in November that the bank’s adoption of generative AI was so far augmenting jobs.
Jamie Dimon, JPMorgan’s chief executive officer, told Bloomberg Television in 2023 that AI is likely to make dramatic improvement in workers’ quality of life, even if it eliminates some positions. “Your children are going to live to 100 and not have cancer because of technology,” Dimon said at the time. “And literally they’ll probably be working three-and-a-half days a week.”
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Microsoft has announced new performance-based layoffs affecting less than 1% of its global workforce of 228,000 employees. The company’s focus on “high-performance talent” drives these actions, which span multiple departments, including its security division. While layoffs reflect ongoing tech industry trends since 2023, Microsoft’s Chairman Satya Nadella unveiled a large-scale initiative to train 500,000 individuals in rural India in artificial intelligence skills, reinforcing the company’s commitment to innovation and growth.
Microsoft has begun the year with small-scale layoffs across various departments, citing performance as the primary criterion. A spokesperson for the company told CNBC, “At Microsoft, we focus on high-performance talent. We are always working on helping people learn and grow. When people are not performing, we take appropriate action.”
The job cuts, affecting less than 1% of its 228,000 employees, are part of a broad effort to enhance performance management. Business Insider reported that these layoffs also include employees in the security division. According to sources, managers have spent months evaluating staff performance across all levels, including senior positions.
While the company is letting go of underperforming employees, many of the vacated positions may be refilled, ensuring that the overall workforce size remains relatively stable.
This is not Microsoft’s first round of layoffs in recent years. In 2023, the company cut approximately 10,000 jobs, representing about 5% of its workforce. That year, its Xbox gaming division also saw minor job reductions.
In 2024, following the $75.4 billion acquisition of Activision Blizzard, Microsoft dismissed nearly 2,000 employees from its gaming division to eliminate redundancies. Further layoffs during the summer affected its Azure cloud computing unit, initially targeting 1,500 roles, with approximately 1,000 employees ultimately laid off.
The broader tech industry has experienced significant downsizing since 2023, with companies like Google and Microsoft prioritising efficiency and performance amid economic pressures. Although it’s early in 2025, analysts expect such workforce reductions to continue as companies refine their strategies.
AI Skilling Programme for Rural India
Amidst the restructuring, Microsoft is making significant investments in artificial intelligence skill development. During a visit to New Delhi as part of the Microsoft AI Tour, Chairman and CEO Satya Nadella announced a collaborative initiative with India’s Ministry of Electronics and Information Technology (MeitY).
The programme aims to train 500,000 individuals in rural India in artificial intelligence skills. “There’s tremendous progress in AI skilling in India,” Nadella stated, emphasising the country’s vital role in the global AI landscape. This initiative is designed to empower underserved communities by equipping them with cutting-edge technological expertise.
Microsoft’s Strategic Outlook
Despite workforce adjustments, Microsoft remains focused on growth opportunities in artificial intelligence and cloud computing. The company’s partnership with OpenAI, in which it has invested over $13 billion, underscores its ambition in the AI sector. While tensions with OpenAI have emerged, Microsoft’s AI-driven products, such as the Microsoft 365 Copilot assistant, continue to develop and gain traction.
In October 2024, Chief Financial Officer Amy Hood indicated that revenue growth from Microsoft Azure, supported by AI infrastructure, is expected to accelerate in early 2025. These initiatives signal the company’s dual focus on operational efficiency and innovation.
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OpenAI's new o3 model demonstrates a significant leap in logical reasoning and code-generation capabilities, offering unprecedented productivity for coders. Industry leaders advocate for developers to adapt and leverage AI tools to enhance their skills, noting the irreplaceable value of human intuition, judgment, and innovation in software development.
OpenAI’s new o3 model arrived with little fanfare but quickly set off a surge of conversation in tech circles. Early demonstrations suggest a leap in logical reasoning and code-generation capabilities, far beyond earlier AI tools. If these benchmark results prove accurate, coders may be on the verge of a profound transformation in how they work—an evolution that, while exciting, also raises questions about job displacement and the future of software development.
Many in the industry see o3 as a productivity boon. “These tools drastically improve productivity by significantly reducing the time taken for routine tasks,” says Krishna Prasad Vyakaranam, CTO at Motivity Labs, a part of Magellanic Cloud. “Developing a feature that used to take days can now be completed in minutes. Coders should view this evolution as inevitable and akin to previous technological transitions, such as moving from books to Google and now from Google to advanced AI models.”
Among those intrigued by o3’s performance is Lalitha Duru, VP of CleverTap Labs, who calls it “definitely the biggest leap AI has taken since its inception,” citing its success on benchmarks like ARC-AGI. Though Duru highlights o3’s resource intensity—at times making it costly—she notes that technology often becomes more affordable over time and sees o3 as “a wake-up call signalling the demand for a better class of developers.”
Others emphasise that coders need not fear automation but should adapt, honing the traits that AI cannot replicate. “The capabilities dem onstrated by o3 are undoubtedly impressive and should be seen as a double-edged sword for coders and software developers,” says Atul Rai, co-founder & CEO of Staqu Technologies. He points out that o3’s strongest advantage lies in tackling repetitive tasks. “Rather than fearing obsolescence, coders should embrace this as an opportunity to evolve, leveraging AI tools to augment their capabilities.”
A similar theme emerges in discussions about the human qualities AI lacks. “AI models like o3 still can not fully replicate creative intuition, moral reasoning, and the understanding of ambiguous requirements,” says Manish Jha, chief information officer at Addverb. “Coders and software developers should welcome and adopt this change with enthusiasm and curiosity, but also remain aware of how such models may shape traditional roles.”
For Lakshminarasimman Raghavan, GVP of technology at Publicis Sapient, the continuing importance of human oversight cannot be overstated. “While coders will have powerful assistance from such models, a lot depends on the human-in-the-loop—the programmer—to ensure the code they write is part of software that actually creates value.”
Nearly all these industry experts recommend that developers confront o3’s rise by strengthening the abilities no AI can imitate. “AI can only extrapolate from existing data and patterns,” says Vyakaranam. “It cannot replicate the uniquely human capacity to think about social impact or sense what might be controversial.”
The tech industry in 2024 is witnessing a significant wave of layoffs, with nearly 150,000 workers losing their jobs across major companies like Tesla, Intel, Microsoft, and Cisco. As the market adapts to changing economic conditions, tech giants are streamlining their operations to cut costs, restructure their businesses, and align with evolving market demands, reported The Times of India.
>> Intel cuts 15,000 jobs amid toughest year in history
In a bid to save $10 billion by 2025, Intel announced a massive reduction in its workforce, cutting 15,000 jobs, or over 15 per cent of its total headcount. Facing substantial losses, the chipmaking giant is slashing R&D, marketing, and capital expenditures in a significant effort to improve its financial standing amid difficult market conditions. The restructuring aims to focus on efficiency, eliminating non-essential operations, and optimising spending.
>> Tesla’s double blow: 20,000 jobs cut
Tesla, led by CEO Elon Musk, has been executing aggressive layoffs, reducing its workforce by over 20,000 employees across multiple departments. Musk's directive to "be absolutely hard core" about job cuts led to layoffs in both junior and senior executive ranks, with the Supercharging team among the hardest hit. Bloomberg reports that Tesla's workforce reduction could reach as high as 20 per cent in total.
>> Cisco slashes 10,000 jobs as demand shifts
Networking giant Cisco laid off approximately 10,000 employees in two rounds of layoffs this year. The company made a 5 per cent workforce reduction in February, followed by another 7 per cent reduction in the second half of the year. As CEO Chuck Robbins put it, Cisco is adapting to a "more normalised demand environment," while pivoting to focus on high-growth sectors like AI and cybersecurity.
>> SAP restructures, affects 8,000 employees
SAP, a leader in enterprise software, is undergoing a major restructuring process affecting 8,000 employees, roughly 7 per cent of its workforce. The company has opted for job changes or buyouts as part of an ongoing effort to streamline operations and position itself for future growth.
>> Uber cuts 6,700 jobs as pandemic strain continues
Uber, still reeling from the effects of the Covid-19 pandemic and reduced demand in the ridesharing sector, has laid off 6,700 employees. The company has also restructured, closing offices and winding down certain business units, including self-driving labs, as part of a long-term reevaluation.
>> Dell faces second round of cuts, eliminates 6,000 jobs
Dell Technologies has enacted its second major round of layoffs in just two years, eliminating 6,000 jobs due to sluggish demand in the personal computer market. The company is also cutting additional positions in 2024 to address cost concerns amid a challenging economic environment.
>> Bell cuts 4,800 jobs in shock virtual terminations
Canadian telecommunications company Bell has laid off approximately 4,800 employees in an unexpected restructuring. The terminations were carried out via 10-minute video calls, a controversial move that has drawn criticism. Bell justifies the cuts as necessary for simplifying its organizational structure and transforming its business model.
>> Xerox slashes 3,000 jobs in restructuring
Xerox is cutting 15 per cent of its workforce, affecting around 3,000 employees as part of a larger restructuring effort. The company is focusing on simplifying its core print business and investing in IT and digital services to adapt to changing market needs.
>> Microsoft cuts 2,500 jobs in gaming division
Microsoft has restructured its gaming division, laying off 2,500 employees across Activision Blizzard, Xbox, and ZeniMax. These cuts are part of an effort to establish a more sustainable cost structure, with significant leadership changes, including the departure of key executives.
>> PayPal lays off 2,500 employees amid profit pressure
PayPal has announced a 9 per cent reduction in its workforce, laying off 2,500 employees due to rising competition and profit pressure. CEO Alex Chriss stated that the job cuts are part of a "right-sizing" strategy to position the company for future profitability.
>> Byju’s cuts 2,500 jobs amid financial struggles
Indian ed-tech giant Byju's has laid off 2,500 employees, about 5 per cent of its workforce, as part of ongoing restructuring efforts. With mounting debt, Byju’s is trying to streamline its operations and adjust to a changing market.
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Google has reportedly cut its number of top management roles by 10% in its yearslong push for efficiency. According to a report in Business Insider, CEO Sundar Pichai told employees the same in an all-hands meeting earlier this week.
Pichai reportedly said that Google had made changes over the past couple of years with the aim to "simplify the company and make it more efficient." The report quotes two employees who claim to have heard the remarks.
Quoting sources, the report added that Pichai further said that the efficiency push included a 10% reduction in managers, directors, and vice presidents. Google spokesperson told the publication that while some of those roles were changed to non-managerial positions others were eliminated entirely.
Google's 'biggest-ever' job cuts
In September 2022, Pichai said he wanted Google to be 20% more efficient, and the following January the company had a historic round of layoffs that saw 12,000 roles eliminated. In January 2023, Alphabet, parent company of Google, announced that it’s cutting around 6% of its global workforce. In an open letter published by Google and Alphabet CEO Sundar Pichai said that the company had “hired for a different economic reality” than what it’s up against today. “We’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company,” Pichai wrote, adding that the layoffs will impact units across Alphabet, not just Google, and that all regions and product areas will be affected.
Layoff warning in January 2024
In January 2024, Google CEO Sundar Pichai sent a memo to its staff warning more layoffs are expected this year. Pichai’s memo said the company will have to make “tough choices” to meet its ambitious goal. Though Google layoffs in 2024 have not been as deep as in 2023, several divisions have seen employees go.
"Googleyness" gets new meaning
At this week's all-hands, Google CEO Pichai also said that the word "Googleyness" had become too broad. Pichai clarified what the word means for the company. The word is now said to be about being "Mission First" and being "Bold and Responsible."
The Tokyo Metropolitan Government is set to implement a four-day workweek for its employees starting in April 2025, aiming to address Japan's declining fertility rates and promote work-life balance. Governor Yuriko Koike unveiled the plan, which also includes new policies to support working parents. The initiative is part of a broader effort to help alleviate pressures on families and reduce the gender gap in the workforce.
Starting in April 2025, the Tokyo Metropolitan Government will offer its employees a new work schedule—three days off each week. This move is part of a broader strategy to address Japan’s declining birth rates by improving work-life balance, particularly for working parents. Alongside the four-day workweek, a separate policy will allow parents of elementary school children in grades one to three to reduce their working hours in exchange for a proportional salary cut.
“We will review work styles … with flexibility, ensuring no one has to give up their career due to life events such as childbirth or childcare,” said Tokyo Governor Yuriko Koike, in a policy address on Wednesday. “Now is the time for Tokyo to take the initiative to protect and enhance the lives, livelihoods, and economy of our people during these challenging times for the nation.”
Japan’s Fertility Crisis and the Need for Change
Japan is currently facing a fertility crisis, with its birth rate dropping to a record low of 1.2 children per woman, far below the replacement rate of 2.1. In 2023, the nation saw only 727,277 births, with Tokyo's birth rate sinking even further to 0.99. This demographic decline has caused significant concern, as it is expected to lead to a population reduction from 128 million in 2008 to an estimated 86.7 million by 2060.
In response, the government has introduced various policies, including incentivising childbearing and encouraging men to take paternity leave. However, experts argue that Japan's demanding work culture is a major factor driving down birth rates. Long hours and high workplace pressure often force workers, especially women, to choose between their careers and family life. This issue is compounded by Japan's substantial gender gap in labour force participation—55% of women participate in the workforce compared to 72% of men, according to World Bank data.
The Work-Life Balance Struggle
Japan's rigorous work culture, known for long hours and “karoshi” (death by overwork), has long been a barrier to balancing career and family. Women, in particular, are under pressure to choose between career advancement and motherhood, with many finding the cost of raising children, coupled with their unequal share of domestic duties, too high a price. The International Monetary Fund (IMF) reports that women in Japan perform five times more unpaid domestic work than men, and many women who had fewer children than they wanted cited the increased burden of housework as a deterrent.
A four-day workweek could provide a much-needed solution, offering families more time together and reducing the pressure on working parents. As Koike stated, the goal is to ensure that no one has to give up their career due to childbirth or childcare, with the added benefit of helping improve fertility rates.
Global Success of Shortened Workweeks
The idea of a four-day workweek has gained traction globally, with companies in Western nations beginning to experiment with compressed work schedules as a way to enhance employee well-being and attract talent seeking a better work-life balance. A 2022 global study by 4 Day Week Global involved trials in six countries, where over 90% of participating employees reported improvements in physical and mental health, reduced stress, and better work-life integration. The trials showed that men also took on a greater share of household responsibilities, spending 22% more time on childcare and 23% more on housework.
Peter Miscovich, a global future of work expert at JLL, highlighted the benefits of shorter workweeks, saying, “The upside from all of that has been less stress, less burnout, better rest, better sleep, less cost to the employee, higher levels of focus and concentration during the working hours, and in some cases, greater commitment to the organisation as a result.”
These positive results suggest that Japan’s move toward a four-day workweek could alleviate some of the burdens of working parents and potentially boost the country’s low fertility rate.
Cultural Shifts and Challenges Ahead
While the four-day workweek has proven successful in other parts of the world, its adoption in Japan presents significant cultural challenges. In Japanese corporate culture, long hours are often equated with loyalty to the company, and shifting away from this norm will require a deep cultural transformation. Despite the potential benefits of a shorter workweek, it may take time for Japanese companies to fully embrace the idea.
Tokyo’s initiative comes at a critical time for the nation, which has seen its population steadily decline since 2008. In addition to its fertility policies, Japan is pushing for measures to create a more family-friendly society. Earlier this year, Singapore introduced new regulations requiring companies to consider employee requests for flexible working arrangements, including four-day workweeks.
As Tokyo moves forward with its plans, the success of these policies could set a precedent for other cities in Japan and beyond, encouraging broader adoption of family-friendly work policies and offering new solutions to global work-life balance challenges.
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