Good morning AusCorp. Only 4% of Australian businesses told the ABS that AI had replaced roles they’d normally hire for, so we’ve looked at what’s driving all these redundancies.
In this week’s edition, we also unpack how David Jones ended up in administration, from brands walking out to landlords refusing to cut its rent.
Plus 1 in 5 cafes put their prices up in the first month of the card surcharge ban, more than 10,000 Australians are already waiting on Wegovy’s new daily pill, and 6 sunscreens sold in Australia failed to meet their SPF claims.
AUSCORP VAULT
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It takes about 90 seconds and it's free. It's also anonymous and community-built so every salary opens up comparisons for more jobs.
THE BIG CONVERSATION
Is AI behind all these job cuts?
A little over two weeks after announcing up to 2,500 job cuts, NAB said more than 40,000 of its staff will have access to its own AI assistant. ABS figures show redundancies hit 57,800 in August, about 13,000 more a month than the average over the last two years. But redundancies happen all the time, and in any ordinary month, 41,000 people being let go would be BAU. According to the ABS this year, only 4% of businesses said AI had cut the jobs they were hiring for, so plenty of these cuts would be happening with or without AI. A lot of the cuts we’re seeing look more like companies freeing up money to prepare for whatever’s to come.
In a lot of offices, using AI is part of your KPIs, and because it’s meant to make everyone more productive, companies are expecting more work out of each person than they used to. If a dashboard says AI is saving each person on a team of ten around 5 hours a week, that’s 50 hours, or roughly one full-time employee in potential cost savings. For now, those hours are spent fixing what the AI got wrong, but as the tools improve those costs will actualise.
The tools change every few months and a company’s 2027 AI plan will likely be out of date by the end of Q1. It doesn’t help that execs are learning it at the same time as their teams, so AI training is even further behind. Bain worked out that to pay for all the computing power being built, the AI industry needs to be earning US$6 trillion a year by 2031, or the equivalent of every person on the planet spending US$730 on AI every year. So while companies like Canva have slowed its AI product rollouts because of the computing costs, we wouldn't be surprised if a few firms ease off over the next few months.
From what we’re seeing and hearing, we don’t think AI is about to replace people entirely. It’s only as good as the person using it, so the edge goes to people who know their work well enough to use it properly. It’s a bit like Excel, which is a beast in the right hands and a calculator for most of us.
PICK & SCROLL BY THE AUSSIE CORPORATE | LAST WEEK'S TOP PICKS
The share of average household earnings needed to service a new mortgage on a median-priced Sydney home has reached 30.7%, the highest level since the 1990s and well above the rest of Australia. LINK
Across 65,000 Australian businesses in hospitality, retail and services only 12.4% raised prices in the first 3 weeks after the card surcharge ban began on 1 October. LINK
More than 10,000 Australians have already joined the waitlist for Wegovy's new daily pill, the first GLP-1 weight-loss tablet cleared for use here. LINK
Consumer NZ testing found 6 sunscreens sold in Australia failed to meet their advertised SPF ratings as the TGA considered possible regulatory action and tighter testing rules. LINK
1 in 5 cafes raised prices in October, the first month of the Reserve Bank's ban on card surcharges, though not necessarily because of the ban alone. LINK
Every weekday morning at 8:00am, we send you everything that happened across Australian business and corporate news in a 2-minute read.
Our Inside Track is in there too (just daily), so you hear what's happening inside corporate Australia first. Same team. Same voice. Just daily.
THE INSIDE TRACK
Every leak and company update we receive now lives on our website, and we keep adding to each thread as more details come through.
Heard something at work? Redundancies, offshoring, a memo that should not have gone out. Tell us what’s happening at your company.
THREAD OF THE WEEK - r/AUSCORP
Un productive days
Do people in higher level jobs have days where they are unproductive? Taking care of personal things, scrolling social media, taking longer for lunch, chatting to colleagues?
I’m mid level and I can honestly say I’m not always effective every day. However I think that is largely due to being in a job that I don’t enjoy.
My company has documented policies about not doing anything personal on work time. Not surprising but it doesn‘t build a culture of trust.
Curious if people are in jobs where they are effective every day.
“It's wild the dawgs that have the most unproductive days per month are also the people trying to punish the general workers for unproductive time.”
Top Comment
THE BRAINS TRUST
David Jones went into administration on Thursday. Administrators have taken control of the business and will try to sell it or strike a deal with the people it owes. The 38 stores are still trading, staff are being paid and gift cards still work.
A lot of David Jones stores are run by the brands themselves. They rent counters inside the store and bring their own staff and stock, and DJs takes a cut of each sale. That keeps DJs' costs down, and it also means a brand can pack up and leave quickly, because the stock and the staff belong to them.
DJs lost $95.5 million in the year to June 2025 and started paying suppliers late, and some now want to be paid upfront. Accent Group stopped supplying in July, Gucci left, Dior pulled its shoes and handbags and Country Road Group plans to close nearly 100 of its 283 counters next year. Every brand that leaves gives shoppers one less reason to shop at DJs, which means less money to pay the brands that stay.
Their physical DJ’s stores made it worse. They're huge and DJs is locked into long leases on them, including all the ones that lose money. At QueensPlaza in Brisbane it takes up 74% of the floor space. DJs stopped paying rent to Westfield at the end of September and asked its landlords to let it keep only 12 to 20 of its stores on lower rent. They said no. Its lender, Hilco, had lent it $10 million over the agreed limit in late October to buy Christmas stock, and on Thursday sent in its own people to get its money back.
The administrators say interest from buyers has been "extraordinary". Whoever buys it will most likely run fewer stores, and the buyer is likely to keep the city stores and the best suburban ones. Morgan Stanley thinks Westfield could end up taking back two-thirds of DJs' space in its centres. The people and businesses DJs owes will meet for the first time on 17 November.
OFF THE CLOCK
EATING
This is the best restaurant in Australia, according to the World's 50 Best
Sydney’s Saint Peter has made the World’s 50 Best Restaurants list at number 50, becoming the first Australian restaurant to earn a spot in eight years. LINK
GOING
The Finders Keepers Sydney Design Market
Shop unique homewares, fashion and gifts from over 170 independent designers and makers, all in one place. LINK
READING
The best books on High Performance Psychology
Building mental resilience is just as important as working hard. These five books can help you develop the right mindset to reach your goals. LINK
WATCHING
Harry Potter HBO Series Episode Release Schedule: When Are All Eight Episodes Out?
HBO’s new Harry Potter series is set to premiere on Christmas Day 2026, with episodes reportedly releasing weekly rather than all at once. LINK
WEARING
9 best men’s tote bags for work, weekends & style
Men’s tote bags have come a long way from supermarket trips and free conference merch. They’re now a stylish, practical everyday accessory for work and weekends. LINK
AUSCORP EVENTS
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ODD PICKS FROM LAST WEEK
PwC boss says work from home is damaging young workers' careers and progression. LINK
This is how fast you should walk to help lower your risk of death. LINK
The good and the hard of life on GLP-1s. LINK
How we can exercise more without even trying? LINK
Brazilian youth match descends into chaos with record-breaking 53 red cards. LINK
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