As companies rush to embrace AI, layoffs have become a knee-jerk response to workforce uncertainty. TechWolf, a workforce intelligence firm, argues this is shortsighted. Its newly released Workforce Intelligence Index, drawing from over two billion global job postings from 2015–2025, reveals only 18% of tasks are fully automatable, while 62% remain entirely human and 38% face partial AI disruption. Among Fortune 500 tech firms, 75% of employees have untapped potential for upskilling or reskilling.
“Layoffs may please investors for a quarter, but they weaken companies for years,” said Mikaël Wornoo, Founder and President of TechWolf. “The smarter move is reskilling. It keeps knowledge inside the business, strengthens culture, and delivers sustainable growth in the AI era.”
Reskilling: A Strategic Imperative
TechWolf’s research underscores that cutting staff for automation short-term gains erodes innovation, morale, and long-term performance. SHRM data shows employees at companies undergoing layoffs reported 67% more acts of workplace incivility than peers at stable firms. Upskilling, in contrast, improves retention, builds productivity, and positions companies to capture AI-driven efficiency gains.
Engineering Roles Aren’t Going Away
Engineering and software development jobs, often viewed as vulnerable, actually have high augmentation potential. AI tools like “vibe coding” and large language models enhance output rather than replace talent. Major tech firms—Microsoft (86% upskilling potential), IBM (85%), Dell (79%), Apple (75%), Cisco (70%), Qualcomm (71%)—demonstrate significant opportunity to upskill engineers into AI-augmented roles, accelerating product velocity and fostering innovation.
Sector-Specific Insights
The Workforce Intelligence Index spans 1,500 public companies across technology, healthcare, retail, and consumer goods, revealing sector-specific AI readiness:
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Healthcare: 62% of companies need upskilling, 67% benefit from human-AI collaboration, and 33% face significant disruption. Frontline staff training enhances care while addressing shortages.
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Retail & Consumer Goods: 68% require upskilling, 69% benefit from AI-human partnerships, and 31% face disruption. Employees trained for data-driven decisions improve customer engagement and market share.
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Technology: 75% require upskilling, 55% benefit from human-AI synergy, and 45% see disruption. Engineers move into AI-augmented roles, emphasizing orchestration, oversight, and integration.
The findings highlight that AI’s impact varies by industry and job type—its promise lies in augmentation, not wholesale replacement. Companies that strategically reskill can retain critical knowledge, strengthen culture, and maintain competitive edge.
Looking Ahead
TechWolf’s Workforce Intelligence Index uses the Human Agency Scale from Stanford to quantify automation potential, benchmarking roles across sectors to reveal where reskilling offers the greatest ROI. The company’s open-source JobBERT model, widely cited in peer-reviewed research, demonstrates the growing sophistication of AI-driven workforce insights.
Wornoo concluded, “C-level leaders can use AI readiness insights to proactively reshape their workforces, empowering employees to lean into creativity, judgment, and expertise instead of fearing obsolescence.”
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