AI Bringing 'Structural Reset' as Thousands of Jobs Are Lost, Expert Says
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Details
- Date Published
- 26 Feb 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 26 Feb 2026, 02:00 am
Description
<p>A high-level consultant said recently announced job cuts by major companies weren&#x27;t just about costs.</p>
Summary
The article highlights a growing trend among major companies to implement AI-driven efficiency, leading to significant job losses. Richard Valente, a vice-president at TP Australia, characterizes these changes not as cyclical cuts but as a structural reconfiguration of the workforce. The shift from large transaction-processing teams to those managing AI systems poses a risk if companies focus solely on automation without ensuring quality customer interactions. This transformation underscores the need for businesses to balance enhancements in AI capabilities with investment in human skill development and empathetic customer service to maintain trust. The article situates these developments within a broader global trend but does not specifically address existential or catastrophic AI risks.
Body
Two major companies in the past two days have announced thousands of collective layoffs as they pursue AI-driven efficiency, and one expert says it's just the beginning.WiseTech Global yesterday revealed that as part of its ongoing efficiency drive, about 2000 workers were expected to lose their job in 2026-2027.The day before, it emerged Commonwealth Bank will cut 300 jobs of its own.READ MORE: PM apologises to Grace Tame over one-word descriptionMajor organisations are turning to AI and cutting employees. (Getty)But TP Australia's vice-president of customer experience strategy, Richard Valente, who works with major businesses on AI customer experience transformation and workplace strategy, said these decisions weren't just about trimming costs, but fundamentally redesigning what an employee is."This isn't a cyclical job cut. It's a structural reset of the workforce," Valente said."The era of large, transaction-processing teams is ending. Banks are moving to smaller, highly specialised workforces who manage AI systems, interpret complex data and step in when things go wrong."READ MORE: Alleged kidnapping victim recovered from Sydney property in covert operationTP Australia vice president of customer experience strategy Richard Valente. (TP in Australia)Valente said the recent announcements reflected a broader global trend of organisations racing to embed AI into customer operations while redefining human roles.And he said the bar would be raised for those humans who remained onboard."The future frontline banker won't just process requests, they'll be problem solvers, relationship managers and trust builders," Valente said.READ MORE: Why this beach was just crowned Australia's bestValente said customers would still want good service. (Getty)But it's possible the strategy, being adopted by businesses at an increasingly accelerated rate, could backfire.Valente warned the biggest risk for businesses would be focusing too heavily on automation without maintaining customer experience standards."If organisations treat AI purely as a productivity tool, they risk eroding trust," he said."Customers will still want empathy, reassurance and human judgement, particularly when dealing with money, fraud or financial hardship."Valente said successful companies would be those that balanced automation with investment in workforce capability."The real competitive edge won't come from AI alone, it will come from how effectively organisations retrain, redeploy and empower their people to work alongside it," he said."Organisations also need to ensure they show empathy and understanding to those who are being displaced to protect their own brand. "Providing training, services and Australian AI platforms which assist displaced people to build their own future career path."NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.Download the 9NEWS App here via Apple and Google PlayMake 9News your preferred source on Google by ticking this box hereSign up to our breaking newsletter here