The impact of AI on enterprises is shifting from efficiency enhancement to job re-engineering. The Chief Executive Officer of Palo Alto Networks Nikesh Arora stated that most employees in large enterprises still lack sufficient AI capacity and that this gap is affecting recruitment, retention and team alignment.
Palo Alto adjusts the team with natural loss
Arora states that the company currently has approximately 21,000 employees, who do not use a centralized staff reduction approach, but rather allow for a continuous natural loss of staff to complement new staff more familiar with the AI tool.
According to him, Palo Alto Networks, which leaves about 2 per cent of its employees each month, uses this rhythm to gradually replace jobs and to recruit skilled and competent AI personnel through, for example, hackers.
Twenty percent of the team is to be restructured within a year.
Arora expects that, if advanced in the current way, some 20 to 25 per cent of the team ' s staffing structure could be adjusted within 12 months, and that companies would have a higher percentage of AI skilled employees within 3 years.
In his podcast, he stated that the enterprise had entered a new screening period and that staff needed to learn for themselves and adapt to the AI tool as soon as possible, rather than waiting for the company to establish a complete training system.
Multiple technology companies are synchronizing.
According to a study by Orgvue in 2025, 39 per cent of business managers indicated that they had reduced their jobs because of the introduction of AI. It is also mentioned that companies such as Coinbase, Block and Cloudflare have experienced staff cuts or organizational contractions related to AI.
Similar findings were made not only by Palo Alto. The CEO of Google Sundar Pichai said that no career path is entirely immune to AI; Chief Executive Officer Wong In-hoon of Inweda said that most people are not necessarily replaced by AI, but are more likely to be replaced by people who are more likely to use AI.