Nick Glynne, the CEO of Buy It Direct, a major online retailer in the UK, has indicated that automation and artificial intelligence (AI) may reduce the company’s workforce by two-thirds within the next three years. Glynne discussed these predictions during an interview on BBC 5 Live’s Wake Up To Money, expressing concerns about the future of hiring in the UK, which he described as “very bleak” for his business.
Buy It Direct, headquartered in Huddersfield, currently employs over 800 staff members and operates multiple online retail brands, including Appliances Direct and Furniture 123. While Glynne has estimated that more than 500 jobs may be cut, he clarified that this is not a definitive plan yet. He noted that rising costs imposed by the government, such as increases in the national living wage and national insurance contributions, are expediting this shift toward automation.
The potential job reductions are attributed to Glynne’s forecast that the company could maintain the same revenue and operational activities with a significantly smaller workforce through investments in AI and automation technologies. As part of this strategy, Glynne mentioned the use of robotics in warehouses and AI applications in office environments.
The discussion around job losses, particularly for entry-level positions, comes amid growing concerns about the impact of AI on employment. Graduates in fields such as graphic design and computer science are reportedly finding themselves competing against technology for job opportunities.
Additionally, Glynne revealed that higher business taxes have influenced the company’s outsourcing strategies, leading to an increased recruitment of senior positions from abroad. He described this shift as an experiment that has been largely successful, resulting in the hiring of various roles, including managers and IT specialists, outside the UK.
Source: https://www.bbc.com/news/articles/c98n28k9nz1o?at_medium=RSS&at_campaign=rss