March 15, 2026 — 5:00am
The tech industry in Australia is facing a seismic shift as companies grapple with the integration of artificial intelligence (AI) into their operations. The recent announcements from major firms such as Commonwealth Bank, WiseTech, and Block have sparked a debate over whether AI is genuinely replacing tech jobs or if companies are using the technology as a pretext for workforce reductions, a phenomenon some are calling ‘AI-washing’.
Last year, Commonwealth Bank had to backtrack on its decision to cut call center jobs, which were initially deemed obsolete due to AI advancements. However, in a recent announcement, the bank confirmed the layoff of 300 workers, emphasizing a new strategy to help employees adapt to AI-driven changes in the workplace.
Tech Giants Announce Major Job Cuts
This wave of job cuts is not isolated. In recent weeks, WiseTech, a logistics software leader, revealed plans to reduce its workforce by up to one-third. CEO Zubin Appoo stated that the traditional role of manual coding is becoming obsolete, replaced by AI capabilities. Similarly, Block, the parent company of Afterpay, announced a 40% reduction in its global workforce, including positions in Australia.
Block’s founder and CEO, Jack Dorsey, noted in a candid message that the integration of intelligence tools with smaller teams is revolutionizing the way companies operate. “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company,” Dorsey explained.
The Reality Behind AI Job Displacement
The narrative that AI is consuming tech jobs has raised significant concerns among workers, encapsulated by the term FOBO – “fear of becoming obsolete”. Dario Amodei, co-founder of Anthropic, has predicted that AI models will surpass human cognitive abilities in most tasks by next year, likening it to a “country of geniuses inside a data centre”.
However, not all tech leaders share this view. Atlassian co-founder Mike Cannon-Brookes recently announced a 10% workforce reduction, affecting 1600 employees, but emphasized a balanced approach. “We fundamentally believe people and AI create the best outcomes,” he stated, acknowledging that AI changes the skill set required but does not entirely replace human roles.
AI-Washing or Genuine Transformation?
Critics argue that some companies are engaging in ‘AI-washing’, using AI as a justification for cutting what they describe as bloated workforces. Block’s lavish $100 million staff party last year, featuring high-profile guests like Jay Z, drew criticism for its extravagant spending amid financial challenges. Zachary Gunn, a senior analyst, remarked, “It’s hard to take a company seriously regarding reaching bottom-line targets when it’s spending ~$US70m on a large-scale event for employees.”
Similarly, WiseTech’s acquisition of e2open, which brought more employees than WiseTech itself, has been scrutinized. The company announced cuts of 2000 employees from a combined workforce of 7000, raising questions about whether these reductions are truly driven by AI advancements or other strategic factors.
Future Implications and Industry Outlook
Despite the current job cuts, some experts, including Amodei, suggest that AI is “likely not” displacing jobs at present. This sentiment is echoed by Australian job search group Seek, which reports no significant decline in job ads attributable to AI. “There is nothing our data currently shows that points to any specific decline at the role or industry level as a result of AI,” a Seek spokesperson stated.
Looking ahead, the integration of AI into the workforce poses both challenges and opportunities. As BlackRock CEO Larry Fink highlighted, “America needs an estimated $US10 trillion in infrastructure investment by 2033 to modernise ageing systems and build new energy, digital, and AI infrastructure. Capital alone is not enough – people are central to building our nation’s future.”
The ongoing debate over AI’s role in job displacement versus efficiency gains will continue to shape the tech industry. As companies navigate this evolving landscape, the balance between human expertise and AI capabilities will be crucial in determining the future of work.
