Numerous prominent technology firms are downsizing and streamlining their operations, a prevalent trend in the technology industry in recent years.
According to renowned marketing professor and media figure Scott Galloway, the primary reason behind these layoffs is the integration of artificial intelligence (AI) into business operations. However, some executives are hesitant to openly acknowledge that the staff reductions are part of a strategic shift towards AI implementation.
Galloway draws a parallel between this transformation and a popular weight loss drug, referring to it as “business Ozempic.” He suggests that tech companies, akin to individuals using weight loss aids, are discreetly leveraging AI technologies to optimize their operations.
Despite the remarkable financial performance of tech giants, such as Meta’s unprecedented $20.1 billion revenue in Q3 of 2023, a wave of layoffs has swept through the industry. Meta alone has let go of around 20,000 employees since November 2022, while other major players like Apple, Salesforce, and Alphabet have also implemented significant workforce reductions.
Galloway highlights the juxtaposition of soaring profits and employee layoffs as indicative of a broader geopolitical shift rather than a mere response to business challenges. He asserts that AI’s expanding role in these cutbacks exceeds what CEOs are willing to disclose publicly, attributing their reticence to the apprehension surrounding the transformative impact of AI technologies.
While some tech leaders, such as IBM CEO Arvind Krishna, emphasize that AI investments will enhance employee capabilities, others like Alphabet have explicitly stated that AI initiatives are not directly linked to layoffs. Despite these reassurances, Galloway remains skeptical, suggesting that AI’s capacity to streamline operations and boost revenues may incentivize organizations to embrace this technological shift discreetly.
Galloway envisions a future where AI complements human workers, enabling businesses to achieve more with fewer resources. He anticipates a scenario where AI primarily replaces repetitive tasks, leading to a reconfiguration of job roles within organizations. While projections indicate a significant impact on the job market due to AI integration, Galloway believes that individuals with specialized AI expertise will be highly sought after across various industries.
As AI’s prevalence in the workplace continues to grow, Galloway predicts that corporate executives will eventually acknowledge the strategic adoption of AI technologies in their workforce planning. This candid acknowledgment, according to Galloway, will unveil the underlying reality that AI is the “corporate Ozempic” reshaping operational dynamics and workforce structures in the business landscape.
