Mass layoffs of employees. Deloitte wants to avoid them thanks to AI.

Deloitte is testing new solutions based on artificial intelligence for optimizing personnel management. In this case, technology is supposed to help in the strategic placement of staff so that the company can avoid the need for mass layoffs in the future.

Mass layoffs of employees. Deloitte wants to avoid them thanks to AI.
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Summary

  • Despite extensive recruitment in early 2023, global consulting firms are now facing the need for mass layoffs. Deloitte is one of the first to test an artificial intelligence (AI)-supported personnel management system to avoid this.
  • The system aims to strategically move employees from less active roles to positions that require more attention. AI will manage these processes and assess the competencies required for specific positions.
  • Deloitte hired 130,000 people in 2023, but warned that thousands of employees in the US and UK may lose their jobs due to a slowdown in demand in some sectors. The company currently employs 460,000 people worldwide.
  • Deloitte sees the use of AI for personnel management as a key step in the development of the organization, not just a temporary solution to the problem.
  • Deloitte and other consulting firms have started using generative AI to eliminate repetitive tasks that were previously assigned to junior employees. Tasks such as preparing documents for internal meetings or data collection are now entrusted to tools like ChatGPT.

Global consulting giants found themselves at the end of 2023 facing a paradoxical call: despite widespread recruitment at the beginning of the year, they now have to carry out further mass layoffs. To avoid this, Deloitte, as one of the first companies, is testing and implementing a new, artificial intelligence-supported personnel management system.

According to a report by Bloomberg magazine, its aim is to strategically move employees from less active roles and sectors of the organization to positions that are more important and require more attention at a given time. The management of these processes and the assessment of the competencies required for specific positions are to be entrusted to AI.

– Of course, it's a huge challenge to avoid major fluctuations in recruitment and dismissal. However, we can always be more effective and efficient in searching for new talents – commented Stevan Rolls, global chief talent officer at Deloitte.

These changes come after the company hired 130,000 people this year, but even during the recruitment warned that thousands of employees in the United States and the United Kingdom may lose their jobs due to a slowdown in demand in some sectors. In this context, Deloitte sees the use of AI for personnel management not only as a temporary solution to the problem, but also as a key step in the development of the organization. The company currently employs 460,000 people worldwide - three times more than a decade ago.

– Imagine the company growing twice as big again. It would be a big problem to employ a quarter of a million people a year – added Rolls.

Deloitte and other consulting firms have already started experiments with the use of generative artificial intelligence to eliminate repetitive and time-consuming tasks that have long been delegated to junior employees. Currently, the preparation of documents for internal meetings or data collection is entrusted to tools such as ChatGPT.