Our obsession with people and work, the maximising of one’s strengths in a team and the pursuit of a shared goal has taken on a new perspective with the burgeoning AI transformation.
The value of human beings working together has influenced our perspective on WFH and the associated risks of labour being outsourced to lower economic environments.
But lately, our attention has turned to Artificial Intelligence particularly agentic AI and autonomous systems. Whilst this may seem a few years away, our ethical concerns remain high.
In the interim we see a confluence of our work in HR and AI as inevitable and necessary as organisations seek to adopt technology in fulfilling their mission thereby limiting, reducing or even eliminating their workforce.
How do leaders, managers, HR advisors navigate what lies ahead?
Following is a brief on the labour impacts of AI so far both internationally and in Australia.
If you wish to seek advice on AI adoption and the HR impacts, please reach out – +61 8 6377 7606
Microsoft’s announcement to lay off 9,000 employees (4% of workforce) exemplifies how AI leaders are restructuring amid massive AI investments. This follows previous cuts, totalling 25,000 positions over two years.
Amazon’s robotic milestone is equally telling: over 1 million robots now work across 300+ fulfilment centres worldwide, rivalling their 1.5 million human workforce. Their advanced Vulcan robot handles 75% of warehouse items.
The broader tech industry reflects this pattern.
In 2024, 152,472 tech employees were laid off across 549 companies, with 52,340 more cut across 123 companies in 2025 so far.
IBM eliminated nearly 20,000 jobs as AI systems replaced human workers.
Intel cut 15,000 employees (15% of workforce), whilst Google reduced hundreds across hardware and engineering departments.
Microsoft’s CEO revealed 30% of company code is now AI-written, with 40% of recent layoffs targeting software engineers.
Australia mirrors this global trend. Telstra announced 2,800 job cuts as part of AI integration, whilst Commonwealth Bank eliminated 170 IT workers through digitisation efforts.
Unlike previous technological revolutions that created new employment categories, AI threatens cognitive tasks previously considered uniquely human. The transformation speed is concerning—what took decades during industrialisation now happens in years, creating dangerous gaps where technology advances faster than labour markets can adapt.
Changes Effective 1 July 2025
MINIMUM WAGE INCREASES
About 20.7 per cent of all employees in Australia are paid at the minimum wage rates in industry and occupational awards.
The new National Minimum Wage applying from today is $948 per week (based on a 38-hour week for a full-time employee), or $24.95 per hour. This is an increase from the 2024-25 rates of $915.90 per week and $24.10 per hour.
Casual employees entitled to the National Minimum Wage must receive at least $31.19 per hour, which includes the 25 per cent casual loading.
The 3.5 per cent increase also applies to the minimum wage rates within awards.
SUPER CONTRIBUTIONS INCREASE FROM 1 JULY 25
Superannuation goes up to 12%.
The superannuation guarantee rate increased from 11.5% to 12% from 1 July 2025. This is the final legislated increase to the SG rate.This is typically an employer contribution increase.
In some cases, where employee contracts have salaries inclusive of super the increase may result in reduced employee take home pay.
PARENTAL LEAVE PAY CHANGES
From July 1, 2025, the Australian Government’s Parental Leave Pay scheme is increasing to 24 weeks (120 days), with a minimum of 3 weeks reserved for each parent. This means eligible parents can share up to 24 weeks of paid leave, with a portion specifically allocated to each parent/partner.
Increased Duration:
The total paid leave available increases from 22 weeks to 24 weeks for children born or adopted from July 1, 2025.
Reserved Weeks:
A minimum of 3 weeks is reserved for each parent/partner, ensuring both parents have dedicated time with the child.
Flexibility:
While there are minimums, parents can choose to allocate more than the minimum reserved weeks to each other, depending on their needs and circumstances.
If you’d like an HR Audit or need HR Legal Advice, please reach out to us +61 8 6377 7607
