The technology sector is currently experiencing a series of layoffs, and according to a recent report by business review website B2B Reviews, some companies are turning to ChatGPT to draft termination letters. The report reveals that more than one in ten HR professionals have used the chatbot for crafting employee terminations. However, this unsettling trend may prompt skepticism among tech industry employees as the personal touch for such sensitive conversations seems lost.
Although the use of AI in layoffs is controversial, productivity gains made through ChatGPT usage in other areas cannot be overlooked. HR employees leverage ChatGPT primarily for training and development, employee surveys, and performance reviews, ultimately saving an average of 70 minutes each week. This time-saving aspect allows staff to focus on additional tasks or even take an extra lunch break.
Despite these efficiency improvements, the report suggests a worrying trend for the future of the tech industry and the blockchain sector. It states that 37% of surveyed HR employees expect to conduct layoffs within the next three to six months. Many believe generative AI’s rapid advancement and venture capitalists refocusing on artificial intelligence are contributing factors.
Recent layoffs within the blockchain and cryptocurrency industries further underscore the declining trend. In March, Meta cut 10,000 jobs following the termination of NFT support on Instagram. Although the company still aspires to develop the Metaverse, it has pivoted towards the burgeoning artificial intelligence industry. Meanwhile, Web3 startup Community Gaming laid off 17 employees in April, citing competitive challenges in the gaming industry as justification.
May also saw workforce reduction announcements from Nansen Research and Binance. Blockchain analytics firm Nansen Research shared plans to cut staff by 30%, attributing layoffs to bear market conditions and the need to scale down following rapid initial growth. Simultaneously, Binance, the world’s largest cryptocurrency exchange, revealed intentions to “reevaluate” its headcount.
This trend showcases the harsh realities facing the tech sector, balancing the benefits of using AI like ChatGPT in human resources with ethical considerations surrounding its applications. As layoffs continue and AI gains prominence, a crucial question arises: at what point does the pursuit of efficiency supersede the need for human touch and empathy in sensitive situations, such as employee terminations? The debate remains ongoing within the tech community, with many weighing the pros and cons carefully as AI continues to reshape the present and future landscape of work.
Source: Decrypt
