Deloitte using AI to retain top talent, avoid mass layoffs

Deloitte is hoping that artificial intelligence (AI) will be able to help the company avoid mass layoffs and retain top talent.

According to news outlets, including Bloomberg, the professional services firm is using AI to evaluate the skills of existing employees and create plans that would allow it to shift staff from quieter parts of the business to more in-demand roles.

Earlier this year, Deloitte warned thousands of employees in the U.S. and the U.K. that their jobs were at risk of becoming redundant.

“It is obviously a great objective to be able to avoid large swings of hirings and layoffs,” Stevan Rolls, the company’s global chief talent officer, told Bloomberg.

“You could always be more efficient and effective about finding the right people.”

In addition to avoiding job cuts, Deloitte has begun experimenting with generative AI in an effort to eliminate repetitive, time-consuming work.

Following a recent hiring spree, the firm reportedly employs a total workforce of almost 460,000 people.

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Major layoffs continue

While Deloitte is looking for ways to avoid mass layoffs in the future, many employers pulled out the axe in 2023.

Big names, including Cruise, Etsy, Hasbro, Nike, Spotify, RBC, TD Bank, Broadcom, Amazon, AbCellera, Canadian Tire, PwC, Maersk, and Nokia, have significantly scaled back their staffing levels as they continue to navigate challenging economic conditions.

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• ‘Loud Layoffs’: What employees need to know
• What Canadians need to know about ‘quiet layoffs’
• Where are layoffs happening in Canada?

Can my boss use AI to make major changes to my job?

While employers in Canada are generally able to make minor adjustments to a non-unionized worker’s job, substantial changes would require consent from the individual.

Exceptions: There are some situations where your boss might be able to modify the terms of your employment without breaching your rights:

• You signed an employment contract that gives the company permission to make changes to your job
• Your employer gave you reasonable notice of the modification

If significant adjustments are made to the terms of your employment without your consent, there is a very good chance that you can treat it as a constructive dismissal.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

In this situation, the law allows you to quit your job and pursue full severance pay.

However, you shouldn’t resign until an experienced employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.

ADDITIONAL RESOURCES
• Changes to your job in Ontario: What employees need to know
• What Albertans need to know about changes to their job
• Changes to your employment in B.C.: Employee rights

How is severance pay calculated in Canada?

In Canada, severance for non-unionized employees can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

The amount of compensation you are entitled to is calculated using several factors, including:

• Age
• Position at the company
• Length of service
• Ability to find new work

To figure out how much compensation you should receive, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should take legal action.

We regularly resolve wrongful dismissal claims and can help you secure proper compensation.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for federally regulated workers
• Severance packages in a recession

My boss offered me an alternate role, do I have to accept it?

If your employer offers you an alternate role with the company, and you have a good reason for rejecting it (i.e. reduced pay or unfavourable conditions in the contract), you can still receive full severance pay.

• Example: You are a manager with Deloitte’s Energy & Resources team. One day, you receive a phone call from the company — informing you that your position is being eliminated. Instead of letting you go, Deloitte offers you an analyst position on its Financial Services team. While the company claims that it’s an “in-demand role”, it will require you to accept a 16 per cent reduction in pay. Since this is a substantial change to the terms of your employment, you would be able to refuse the offer and still receive full severance pay.

Even without a good reason for rejecting your employer’s offer, you can still pursue your minimum entitlements at the end of your employment.

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My boss is pressuring me to quit after refusing the alternate role they offered, what should I do?

No matter how upset your employer is that you rejected the alternate role they offered, the company can’t pressure or force you to resign.

If your boss is encouraging you to step down, document their attempts. Keep any letters, emails, or text messages that show how the company is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before contacting an experienced employment lawyer at Samfiru Tumarkin LLP.

We can tell you if you have grounds for constructive dismissal claim.

Already resigned?

If you were forced to quit your job for any reason, reach out to our firm as soon as possible.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

LEARN MORE
• Employment Law Show: Facts about forced resignations
• Employment Law Show: What your employer legally can’t do
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Can my boss fire me for refusing the alternate role they offered?

The short answer is yes. Employers in Canada can fire non-unionized workers if they reject an alternate role with the company.

This is known as a termination without cause. You can be let go for any reason, as long as:

• You are provided full severance pay
• The reasons for your dismissal aren’t discriminatory

However, it’s very unlikely that your boss would be able to fire you for cause in this situation — meaning no severance package or access to Employment Insurance (EI) benefits.

Considered the “capital punishment” of employment law, it’s reserved for the worst workplace offences, such as serious insubordination, theft, or assault.

To justify terminating you for cause, your employer must prove progressive disciplinary measures were applied and that a lesser penalty wouldn’t be suitable, which is very difficult to do.

In our experience, most non-unionized employees don’t meet the conditions necessary for this type of dismissal and are entitled to severance pay.

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• Can I be fired and replaced with AI?
• Do I have to look for a new job after getting fired?
• Employment Law Show: Facts about the termination process

Lost your job? Speak with an employment lawyer

If you are fired or let go for rejecting an alternate role at your company, or for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.