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August 26, 2026Mariana Balint
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READ MOREWhy do early layoffs based on AI fail?
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There has been a lot of discussion lately about how the integration of Artificial Intelligence (AI) will enable substantial workforce reductions without affecting productivity. However, a recent article published in the Harvard Business Review (HBR) titled “Transformation Requires Redesigning Work, Not Cutting Roles” sounds the alarm and analyzes the reality behind the first wave of layoffs caused by AI. The authors’ conclusion is clear: companies that cut staff instead of rethinking their work processes are undermining their own future.
The Trap of Premature Layoffs
Many organizations acted more quickly than the available evidence warranted. Driven by exaggerated projections and the fear of falling behind, executives carried out staff cuts based on the assumption that AI would instantly take over employees’ responsibilities.
However, this approach quickly backfired:
The Paradigm Shift
The HBR analysis emphasizes that the fundamental error lies in how the unit of work is defined. Companies often view a “role” as a monolithic entity that can be entirely replaced by an algorithm.
In reality, a job is a complex set of tasks. For a digital transformation to succeed, leaders must go through three essential stages:
How to Avoid the “AI Trap” ?
To unlock the true value of AI, the article offers several strategic guidelines:
Conclusion
AI is not a quick fix for reducing labor costs, but rather an opportunity to redefine the value that an organization creates. The greatest challenge of the AI-driven transformation process is not technological, but organizational. The companies that will succeed in the long term are not those that lay off employees the fastest, but those that know how to redesign work so that people and technology collaborate to their fullest potential.