Features

Celiwe Ross, Old Mutual Limited

Among large technology firms, AI is now a leading reason cited for job cuts. As of mid-July, the sector has shed just shy of 140 000 jobs in 2026, according to Challenger, Grey & Christmas, a global outplacement, executive coaching and workforce transition firm. Cisco announced 4 000 job cuts in May, saying the move was due to AI adoption. Oracle has laid off around 21 000 in 2026 after accelerating investment in AI technologies. Thomson Reuters is set to eliminate about 500 engineering roles, around 1.8% of its workforce, as it rolls out AI in its businesses.

South Africa has not yet seen any mass corporate layoffs directly linked to AI. Here, the technology’s most immediate impact is being felt across the employee lifecycle. AI is helping HR streamline hiring, answer employee queries, summarise performance reviews, and onboard new staff. It is also enabling businesses to better forecast future skills needs by analysing workforce data. According to Sage, 86% of HR and payroll leaders see AI as transformative and believe that specialist AI tools will make their jobs easier. According to similar IBM data, the use of AI in HR is expected to increase productivity by 35%, training effectiveness by 30%, and retention by 20% by 2027.