Apple’s CEO, Tim Cook, has announced the company’s intention to hire more staff in the UK, focusing on artificial intelligence (AI) roles. In comparison, the rest of the industry has seen mass layoffs, with big names such as Google, Microsoft, Amazon, Meta, Yahoo, Zoom and various startups announcing cuts across their sectors. According to Layoffs.fyi, the current total of layoffs for 2023 stands at 224,503. In light of this, Claire Trachet discusses this latest trend and what this means for the UK business landscape.

Cook has explained that he views layoffs as the company’s ‘last resort’ and instead intends to focus on Apple’s commitment to hiring in AI-related roles while expecting increased investment in the sector. Despite a continuation of rising interest rates and staggering inflation, AI continues to provide optimism during these economic challenges, with research from PWC revealing that AI could contribute $15.7 trillion to the global economy. According to Trachet, Apple’s commitment to expanding its AI workforce in the UK not only reflects its dedication to the rise of AI, but also highlights its choice to invest in human capital rather than resorting to layoffs, demonstrating a proactive stance in supporting both its employees and the broader economy.

Earlier in the year, there were concerns that AI would drastically impact the UK workforce, with a report from Goldman Sachs revealing that AI could hit 300 million jobs. Despite this, various reports have also underscored the positive potential of AI, with a survey from Deloitte finding that a staggering 94% of businesses and IT executives said that AI is vital for their success in the next five years. Trachet explains that AI is helping create new opportunities and foster economic growth in the job market, through the use of automating repetitive tasks and enhancing decision-making processes, AI is not only preserving existing jobs but also paving the way for the emergence of other high-value roles.

Claire Trachet, CEO and founder of business advisory, Trachet, discusses this latest trend and what this means for the UK:

“Apple’s interest in the UK for AI expansion highlights that the UK possesses a great pool of talent and is a leading global hub for AI innovation. Following the UK implementing new principles to safeguard AI, this places Britain in an optimistic position ahead of its global safety summit in terms of leading in regulation and innovation.

“Apple’s tactic is a step in the right direction, as mass layoffs obviously risk damaging company culture to the point of no return and they can make it incredibly difficult to attract great talent that will help the business thrive. By hiring staff across an emerging sector, Apple shows that it is prioritising workers, innovation and the safeguarding of AI technology.

“As Cook mentioned, cutting down staff should always be the very last resort. Instead, companies should be mindful of their budgeting and think about reallocating all of their resources where they can, based on what they have versus what they can deliver, in terms of tools, people and organisation. And through this, after three months, they will slowly see the benefits, and by six months, the company can be on a completely different playing field.

“Businesses must also question whether they have the correct in-house team to not only implement this kind of technology, but also manage the risks that come along with it. Instead, businesses could look at other ways to manage cash flow and growth, for instance, looking to their CFO, whose experience should anticipate the hurdles the business may face and help create optionality.”