The first is the rise of AI. “The world is entering the age of AI,” he said, citing the United States’ plan to establish a new government efficiency ministry to restructure and downsize its federal government using more AI technology.
This global trend, he argued, is forcing both public and private sectors to change their operations, reduce staff, and focus on hiring new, tech-savvy talent. Existing employees, he noted, will need to upskill to remain competitive.
The second factor is the economy, specifically the effects of “Trump’s tariffs,” which are contributing to a global economic slowdown. This pressure is compelling companies worldwide to “trim the fat” and reduce overall expenditure.
The final issue is the sharp increase in competition, particularly in the e-commerce sector, where companies are battling on both quality and cost. To survive, businesses are cutting jobs and adopting new technologies to boost efficiency and lower costs.
“I believe these three factors are forcing businesses to restructure in order to reduce their organisational costs,” Dr Somjai concluded.