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The company has just carried out one of the largest layoffs in its history, replacing 12 employees with Artificial Intelligence systems. The company, which had already begun its restructuring in early 2023, is now moving towards the massive use of AI.
Technological transformation is advancing rapidly, but with it comes severe impacts on the job market.
And in a surprising move, one tech giant has decided to take a radical path. The dismissal of more than 12 thousand employees not only shocked the market, but also revealed a clear sign of human replacement by artificial intelligence (AI).
This action, which had already begun months ago, culminated in a recent announcement that could have even more profound consequences.
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But it’s not just Dell that’s riding this wave of AI-driven restructuring. Large companies across a range of industries are being forced to rethink their workforces as they face the harsh realities of an increasingly competitive marketplace.
Brazil, for example, is already feeling the effects of increasing automation, which threatens several areas of employment.
Dell's mass layoffs and strategy
As announced in July 2024, Dell surprisingly announced the layoff of 12.500 employees, representing 10% of its global workforce.
This frightening number was part of a strategic restructuring of the company, which aims to focus its efforts on products and services based on Artificial Intelligence.
The decision, however, did not stop there. A month later, the company informed the US Trade Commission that further cuts would be made soon.
According to Dell representatives, the company is committed to “advancing its capabilities” and, to do so, an even greater reduction in headcount would be inevitable.
This movement reflects a global trend, in which automation and AI are progressively replacing functions that were previously performed by humans.
The impact on Brazil and the global market
A wave of massive layoffs is not a phenomenon exclusive to the United States. In Brazil, where technology is advancing in sectors such as manufacturing and services, there is also growing concern about the replacement of workers by automated systems.
Technology companies based in the country follow this trend, and many are already implementing AI solutions that directly impact the workforce.
Although the scenario has not reached the same number of layoffs as Dell, automation has been eliminating several job opportunities in areas such as customer service, manufacturing and even creative sectors.
Experts warn that Brazil, if it does not take steps to adapt its workforce, could face an even greater unemployment crisis in the coming years.
The advancement of AI: a blessing or a curse?
Dell's growing use of AI to improve its market performance is seen as an important strategic move, but it raises questions about the future of employment.
According to industry analysts, “the company continues to advance its capabilities, anticipating that this move will result in a continued reduction in headcount.”
Furthermore, by early 2023, Dell had already carried out significant layoffs, beginning a cycle that only intensified in the following months.
Despite this, the company's financial results for the second quarter of 2024 showed a 9% increase in revenue, reaching US$25 billion. These figures reveal that, Despite the layoffs, the strategy of focusing on AI appears to be paying off.
The future of work and technology
The creation of a new AI products and services group within Dell, which led to the latest layoffs, is an indication that the company is looking to establish itself at the forefront of technology. But the dramatic shift raises crucial questions about the future of employment.
The use of artificial intelligence, although efficient, puts millions of workers around the world in a vulnerable position. Are we prepared to face the challenges that AI will bring to the job market?
In Brazil, this question is even more urgent. Technological transformations require rapid adaptation of the workforce and investment in education and training so that professionals can compete in this new scenario dominated by machines and algorithms.
How can this affect you?
With the advancement of technology and the mass dismissal of humans by machines at an accelerated pace, Brazil may face even more challenges in the job market.
Dell, like many other companies, has chosen to sacrifice its workforce in the name of technological innovation. Are we prepared to deal with the consequences of this scenario?
How do you see the future of work in Brazil with the growth of AI technologies? Comment and join the discussion!
We must analyze and formulate ways to limit the use of AI workers. Most companies in Brazil have tax incentives, reducing the tax burden on companies that hire human labor.
And for those that use AI, higher tax burden.
If you want to control, you can do it, you just have to not sell out (negotiate) politics.
If it continues like this, with the workforce being replaced by robots, who will buy the manufactured products? Will it be the robots?
The replacement of the workforce within the capitalist model, as we live, is inexorable. Machines will indeed replace humans in the most varied activities. In my opinion, the implementation of a minimum income system should be the first step to adapt to this reality.