THE IMPACT OF GENERATIVE AI ON HUMAN RESOURCE STRATEGY: WORKFORCE REDUCTION AND TALENT RETENTION

Keywords: human resource management, talent retention, job architecture, reskilling, upskilling, internal mobility, AI skills, retention strategy

Abstract

The article examines how the diffusion of generative AI is transforming human resource strategy in contemporary organizations, focusing on workforce reduction, job architecture reconfiguration, and talent retention. The study is based on the analysis of academic publications and analytical reports on the impact of AI on the labor market and HR management, using comparative analysis, synthesis, and systematization of managerial indicators. The findings distinguish AI-driven structural layoffs from cyclical ones, highlighting their effects on job functions and organizational roles. Structural layoffs are linked to the automation of operational and coordination tasks and a decline in entry-level positions. Changes in skills demand are identified, including the growing importance of AI competencies. An algorithm for role redesign is proposed, along with key metrics for evaluating retention strategy effectiveness.

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Budhwar P., Chowdhury S., Wood G., Aguinis H., Bamber G. J. HRM in the age of generative AI: Perspectives and research direction on ChatGPT. Human Resource Management Journal. 2023. Vol. 33, № 3. P. 606–659. DOI: 10.1111/1748-8583.12524.

Jiang Y., Cai Z., Wang X. Leverage generative AI for human resource management: Integrated risk analysis approach. The International Journal of Human Resource Management. 2025. P. 1929–1959. DOI: 10.1080/09585192.2025.2544972.

Bennett H., McCracken M., O’Kane P., Brown T. The elusiveness of strategic HR partnering: Using paradox theory to understand tensions surrounding the HR business partnering role. Human Resource Management Journal. 2023. Vol. 34, № 4. P. 942–959. DOI: 10.1111/1748-8583.12538.

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Jaiswal A., Arun C. J., Varma A. Rebooting employees: Upskilling for artificial intelligence in multinational corporations. The International Journal of Human Resource Management. 2021. P. 1179–1208. DOI: 10.1080/09585192.2021.1891114.

Ekuma K. Artificial intelligence and automation in human resource development: A systematic review. Human Resource Development Review. 2023. Vol. 23, № 2. DOI: 10.1177/15344843231224009.

Ray C. Internal mobility: A review and agenda for future research. Journal of Management. 2024. Vol. 50, № 1. DOI: 10.1177/01492063231180826.

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Published
2026-05-13
How to Cite
Iefimchuk, I., Sypiahin, O., & Havadzyn, N. (2026). THE IMPACT OF GENERATIVE AI ON HUMAN RESOURCE STRATEGY: WORKFORCE REDUCTION AND TALENT RETENTION. Economy and Society, (85). https://doi.org/10.32782/2524-0072/2026-85-169