A recent study conducted by General Assembly has revealed some concerning statistics regarding the future of tech industry employment. According to the survey, 54% of tech hiring managers anticipate layoffs within the next year, with 45% stating that employees whose roles can be replaced by AI are most likely to be affected.
The CEO of General Assembly, Daniele Grassi, expressed his concerns about the impending skills crisis, attributing the layoffs to companies ramping up their AI investments in pursuit of greater productivity. Grassi warned that this approach could ultimately lead to a widening skills gap that may hinder the industry’s transformation. He emphasized the importance of providing AI training to all employees to address this issue.
The survey also shed light on the criteria for potential layoffs and job retention in the tech industry. Employees with easily automatable roles or outdated skills were identified as the most vulnerable, with 45% of hiring managers considering them for layoffs. Conversely, employees with high performance ratings, AI-related skills, and those working on priority projects were more likely to be retained.
Furthermore, the study highlighted the evolving demand for new tech roles driven by advancements in AI. Nearly 69% of respondents believe that AI development will create new job opportunities, while 76% acknowledge the potential for upskilling or reskilling employees affected by layoffs.
In terms of sought-after technical skills, AI development, cybersecurity, and data analysis were ranked highest by hiring managers. Soft skills such as strategic thinking, problem solving, and adaptability were also deemed essential for tech talent.
Interestingly, IT teams were identified as the primary drivers of AI transformation within organizations, with 65% of hiring managers placing responsibility on them. Despite the looming layoffs, 42% of hiring managers reported an increase in hiring software engineers due to AI advancements. However, only 31% of organizations have conducted a formal assessment of skills gaps related to AI and automation.
On a positive note, 93% of companies surveyed either plan to or already invest in upskilling or reskilling employees affected by automation. This proactive approach aims to equip workers with the necessary skills to adapt to the changing tech landscape.
Overall, the survey underscores the transformative impact of AI on the tech industry, highlighting the need for continuous skill development and adaptation to remain competitive in the evolving job market. As companies navigate the challenges posed by automation, investing in employee training and development will be crucial for ensuring a smooth transition to the future of work.