AI Job Layoffs: Time to Revive Shorter Working Hours? (2026)

The recent news of Atlassian's layoffs has sparked a much-needed conversation about the future of work and the role of artificial intelligence (AI). While the debate surrounding AI's impact on jobs is well-established, the focus on increased productivity and its potential to reduce working hours is often overlooked. This is a crucial aspect that needs to be addressed as AI continues to transform the software industry.

The history of job displacement due to technology is not new. The Industrial Revolution brought about the Luddite movement, where workers protested against the factory system's negative impact on their livelihoods. The initial effect of factories was indeed detrimental, as it led to longer working hours and the destruction of traditional cottage industries. However, over time, technological progress brought about a significant reduction in working hours. Australia and New Zealand took the lead with the eight-hour workday, which was achieved through the efforts of unions and governments, despite initial resistance from employers.

The push for a 35-hour working week in Australia in the 1980s was a significant milestone, but it was short-lived due to the weakening of unions and the alignment of governments with employers' interests. The standard hours were eventually reduced to 38 per week, and annual leave remained unchanged. This long-standing arrangement has led to a perception that these conditions are the natural order, and any reduction in working hours is seen as a direct job loss.

However, the recent shift to remote work during the pandemic has challenged this perception. Millions of people adapted to working from home with minimal disruption, proving that a radical change in work patterns is possible. The legal right to disconnect and changing social norms have further pushed back against work intensification, with some office workers taking Fridays off. Yet, this shift has not been universal, and industries requiring physical presence, such as retail and transport, have remained largely unchanged.

The introduction of AI in the software industry has brought about significant productivity gains, as evidenced by the use of AI-powered coding tools. However, the benefits of these improvements are not guaranteed to be shared equally. The urgency of the situation calls for a return to the process of gradual reductions in working hours, which has been paused for too long. While AI will undoubtedly produce real productivity improvements, there is a risk that most people will not benefit from these advancements.

In my opinion, the focus on AI's impact on jobs should extend beyond the debate of wages and corporate profits. The increased productivity associated with AI should be utilized to reduce working hours, ensuring a more balanced and sustainable approach to work. This shift in perspective is crucial as we navigate the challenges and opportunities presented by AI in the modern workplace.

AI Job Layoffs: Time to Revive Shorter Working Hours? (2026)
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