HR News: Bungled Layoffs at Shopify, NFL Faces Discrimination Probe, IBM Chief Warns AI Will Take Jobs, Writers Go on Strike, Job Market Softens
HREN News Roundup for the Week of 5/1
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This is a weekly roundup of the latest in HR News.
The crises in Human Resources continue this week as the job market potentially softens, Shopify announces more layoffs, and IBM's CEO warns that the robots indeed will be taking jobs from humans. In addition, the Writers Guild of America goes on strike, while the National Football League (NFL) faces accusations of discrimination in employment.
Shopify Conducts Insensitive Layoffs
Shopify announced that it would slash 20% of its workforce. This comes after the company conducted a round of layoffs in July 2022. CNBC reports that the company's stock surged because it reported first-quarter results that beat expectations and that it would sell its logistics and warehouse automation businesses.
But what's getting more attention is an article in TechCrunch by a former employee, who has not worked at the company for a few years and suggests that the company's decision to inform laid off employees via blog was insensitive. In the piece, Darrell Etherington suggests that Shopify CEO Tobi Lütke is disconnected from workers and the proof is the way he wrote the blog.
"The letter is a particularly egregious example of layoff communications done poorly, but it stands as an accurate representation of Lütke’s basic inability to empathize with the situation of many employees under his company’s charge," writes Etherington.
NFL Faces Discrimination Probe
The NFL is facing scrutiny after the attorneys general of New York, Letitia James, and California, Rob Bonta, announced they are investigating allegations of discrimination at work. Specifically, employees filed lawsuits accusing the NFL of gender, racial and age discrimination, as well as sexual harassment and a hostile work environment, according to ESPN. As part of the investigation, the officials will also look at possible gender pay disparities.
These accusations come after The New York Times broke a story in 2022 about women, who described working for the NFL as being rife with sexism, harassment, and hostility. In addition, some NFL players have notoriously been accused of domestic violence. Also, fired Miami Dolphins coach Brian Flores filed a federal lawsuit against the NFL and three teams last year over alleged racist hiring practices. Read the articles to learn more and draw your own conclusions about the NFL's work culture.
IBM CEO Warns about AI Taking Human Jobs
IBM became the first major organization to admit that it is seriously considering the possibility of replacing humans with AI for certain jobs. Specifically, IBM CEO Arvind Krishna told Bloomberg that he could imagine 30% of back-office functions being accomplished by AI. Currently, IBM has 26,000 employees in those roles, according to Axios, which reported on the Bloomberg interview. And Krishna is pausing hiring in the back office as the company considers next steps. As ChatGPT gets smarter, many are concerned about the future of work for humans.
Writers Go on Strike
AI's disruption of the workplace does not stop with IBM. The Writers Guild of America says it will not share credits with AI. Unionized writers went on strike earlier in the week, which means that late night shows and other entertainment programming went dark.
The writers argue that in the streaming era, they are underpaid and underappreciated. The strike comes in response to failed negotiations between a top guild and a trade association representing Hollywood’s marquee studios, according to NBC News. As a result, the Writers Guild of American voted unanimously to walk out.
By all accounts, this fight is about more than pay and benefits. NBC describes writers as facing an existential crisis as organizations are forcing writers to join the gig economy and work as freelancers with no job security and technology threatens to take their jobs. This strike will be a good case study for those in HR interested in better understanding the pros and cons of unions, what's happening with unionization now, and better communication with talent.
A Softer Job Market
Reuters reports that job openings dropped 384,000 in March, which was the third straight month of decline. In addition, layoffs and discharges increased to 1.8 million. However, in April, the labor market heated up and added 253,000 jobs. Still, the uncertainty is causing anxiety. This potentially softer job market is, perhaps, necessary to address inflation, but it could also spook employees and have consequences for the future.
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