Australian workplaces are bracing for significant staff reductions, with nearly one in five employers expected to lay off workers by the end of March. The latest Quarterly Australian Work Outlook from the Australian HR Institute reveals that 19 percent of companies are planning to make positions redundant by March 31.
Survey Shows Third Lowest Figure Since 2023
While this represents the third lowest recorded redundancy figure since the survey began in early 2023, the data indicates substantial workforce restructuring across multiple industries. The AHRI report specifically identifies health and education sectors as facing the highest risk, with 26 percent of companies in each field planning cuts.
Production and Public Sector Vulnerable
Production industries follow closely behind at 25 percent, while the public sector demonstrates higher redundancy likelihood than private enterprises. Although the AHRI study does not directly attribute these workforce reductions to artificial intelligence, widespread concerns about AI displacement persist among Australian workers.
Major technology companies have already implemented substantial workforce reductions. Atlassian recently announced plans to eliminate 1,600 positions, including 480 Australian roles, while WiseTech Global intends to cut 2,000 staff members - representing approximately one third of its total workforce.
Workers Voice AI Replacement Fears
Teresa Lim, a professional voice artist for radio and television advertisements, expressed her anxiety about potential AI replacement to The Guardian. "It is terrifying not just for voice actors, but for the general Australian public, because currently we have no legislation in place that makes that illegal," she stated, highlighting regulatory gaps in addressing technological displacement.
Corporate Leadership Acknowledges Difficult Decisions
Atlassian CEO Mike Cannon-Brookes addressed staff in a video message explaining that AI had influenced "the mix of skills we need" and "the number of roles required in certain areas." He acknowledged the personal impact of these decisions, stating, "Days like these are among the toughest that we have as a company, and certainly the toughest that I have as a leader. I am deeply sorry for the disruption this creates in your life."
Cannon-Brookes emphasized his belief that these difficult choices represented the right long-term strategy for Atlassian, noting the company's focus on "moving faster, staying disciplined on costs, and proving that we can grow profitably over the long term by remaining responsive to the world we operate in."
Hiring Outlook Reaches Lowest Level Since 2023
Compounding challenges for affected workers, the AHRI survey found that fewer than 60 percent of companies plan to hire new staff during the next three months - the lowest hiring intention level recorded since 2023. This contraction in employment opportunities creates additional uncertainty for those facing redundancy.
AI Reshaping Rather Than Replacing Jobs
The AHRI report suggests that artificial intelligence's primary impact currently involves reshaping work rather than directly displacing jobs. To address workforce transitions, an AHRI spokesperson emphasized upskilling as a crucial strategy for employment security.
"Australians can safeguard their roles by embracing lifelong learning, building skills that complement new technologies, and developing transferable capabilities such as problem-solving and communication," the spokesperson told 9News. "With Australia's workforce ageing and job design evolving, it is essential that workers keep pace with changes in skills demand and the composition of the labour market."
The institute recommends that workers who actively commit to continuous learning and can effectively demonstrate their skills will be best positioned to adapt to changing workplace requirements and maintain employment relevance in an increasingly automated economy.
