In this episode, Dr. Kristine Gentry (Culture Grove) and co-host Monica M. Smith (Tradewinds Career Consulting) unpack the surge in layoffs tied to AI ambitions and what “managing to a spreadsheet” misses about people, risk, and long-term performance. We discuss the ripple effects of rapid RIFs on engagement, institutional knowledge, and resilience; the CEO messaging that’s eroding loyalty; and why culture must sit alongside cost models and AI roadmaps. We also zoom out globally—how regulators, talent markets, and high- vs. low-context cultures are reacting to AI and close with practical ways leaders can reduce risk while modernizing responsibly.

What we cover

• (00:51) Layoff trends: what Q2 cuts signal—and what the numbers don’t show
• (04:55) “Managing to a spreadsheet”: the pitfalls of percent-cut targets
• (10:45) Culture risk 101: institutional knowledge, cross-functional glue & resiliency
• (15:37) AI realism: skills, QA, bias—and why smart people still matter
• (22:33) Research nuance: what AI misses
• (24:31) Global lens: regulators, talent pathways, and cultural expectations

Key takeaways

• Layoffs before readiness raise operational risk. If AI isn’t production-ready across daily/weekly/monthly/quarterly cycles, you’re swapping labor cost for failure risk.
• Percent targets ≠ strategy. Spreadsheet cuts ignore institutional knowledge, cross-team collaboration, and decision-quality—core drivers of resilience and innovation.
• Messaging matters. Publicly downplaying loyalty depresses engagement and accelerates top-talent exits, just when change absorption is most needed.
• AI amplifies what exists. Without people who can frame problems, check bias, and QA outputs, AI can scale errors (and inequities) faster.
• Culture is a control. Treat culture like a set of operating controls (KRIs + KPIs) to govern transformation risk, not an afterthought.

Resources mentioned

• Labor-market reports on job cuts (Challenger, Gray & Christmas)
• AT&T Just Made it Official: Workplace Loyalty is Dead (Business Insider)
• CEO Pride in Shrinking Workforce (CEO Daily Brief)

Next up

• Episode 8: Culture as Your Secret Weapon in the AI Revolution — how to design teams, rituals, and decision systems that make AI work for people and performance.

Thanks for Listening!

We’d love to hear from you.

Kristine Gentry, PhD

kgentry@culturegrove.com

🌐 www.culturegrove.com

🔗 LinkedIn: Kristine McKenzie Gentry

Monica M. Smith

tradewindscareerconsulting@gmai.com

🌐 www.tradewindscareerconsulting.com

🔗 LinkedIn: Monica Mary Smith

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