In a significant shift in the tech industry’s approach to workforce management and artificial intelligence (AI), two prominent CEOs have directed their employees to prioritize AI tools before requesting additional staff. Tobi Lutke, CEO of Shopify, and Micha Kaufman, CEO of Fiverr, issued internal memos last week emphasizing the importance of leveraging AI capabilities within their organizations.
Lutke’s memo to Shopify employees, posted on X, outlined a new expectation that teams must demonstrate why they cannot accomplish tasks using AI before requesting more headcount or resources. The memo stated, “Before asking for more Headcount and resources, teams must demonstrate why they cannot get what they want done using AI.” This directive reflects a broader trend in the tech sector, where companies are reassessing their hiring practices in light of AI’s growing capabilities.
The Shopify CEO further emphasized that AI usage is now a “fundamental expectation” for employees, announcing that the company will incorporate AI usage questions into its performance review questionnaire. Lutke highlighted the importance of learning to effectively prompt AI systems and provide context for their operation, as well as seeking peer feedback on AI-related performance.
Similarly, Kaufman’s memo to Fiverr employees, obtained by HR Dive, stressed the inevitability of AI’s impact across various roles within the organization. The memo read, “It does not matter if you are a programmer, designer, product manager, data scientist, lawyer, customer support rep, salesperson, or a finance person — AI is coming for you.” Kaufman emphasized the need for employees to become “exceptional” in their roles to remain relevant in an AI-driven industry.
Kaufman’s memo also addressed hiring practices in the context of AI adoption, stating, “Get involved in making the organization more efficient using AI tools and technologies. It does not make sense to hire more people before we learn how to do more with what we have.” This approach aligns with Lutke’s directive, suggesting a sector-wide reevaluation of workforce needs in the era of advanced AI.
These memos reflect several converging trends in the tech industry, including the cost of AI talent, increasing uncertainty in the talent market, and the slow growth of the tech sector amid the rapid expansion of generative AI. Recent studies have highlighted the potential for AI skills to command higher wage premiums than traditional degrees, as well as the tendency for companies to poach AI talent rather than developing it internally.
The shift towards AI adoption has been accompanied by significant layoffs in the tech industry. According to a report by Challenger, Gray & Christmas, August 2024 saw the highest number of job cuts in 20 months, with many of these cuts attributed to the adoption of AI and automation. A report by the Burning Glass Institute and SHRM also noted the potential “high human cost” of generative AI adoption, particularly in industries such as finance, insurance, professional services, and information services.
As companies navigate this transition, reskilling emerges as a critical theme. However, encouraging employees to pursue AI training remains a challenge. A Pew Research Center report from February 2025 found that only 12.2% of respondents had received AI training in the past year. Furthermore, a Conference Board report from January 2025 revealed that only 7% of Chief Human Resources Officers (CHROs) surveyed were implementing reskilling strategies for jobs likely to be impacted by AI, indicating significant room for growth in this area.
