Shantanu Narayen, CEO of Adobe, plans to step down after nearly two decades at the helm of the software maker, as the rise of generative AI forces tech companies to rethink leadership, strategy, and workforce size.

Adobe announced Thursday that Narayen will remain as board chair while the company begins a search for his successor, marking a leadership transition as the firm expands its push into generative AI tools across its creative and marketing software products.

“The next era of creativity is being written right now—shaped by AI, by new workflows and by entirely new forms of expression,” Narayen wrote in a letter to employees.



During his tenure, Narayen oversaw Adobe’s growth, lifting its revenue from under $1 billion to over $25 billion, and its software and digital experience tools reached billions of users.

The changes at Adobe come as generative AI tools begin to challenge parts of its core creative software business, with new platforms offering image, video, and design capabilities through simple prompts, replacing traditional editing workflows.

The shift is forcing other tech companies to rethink how products are built, how teams are structured, and how quickly new tools can be deployed.

Tech firms are “pivoting their operations around the AI narrative,” to integrate it across all functions, focusing on strategy and product development, Dominick John, analyst at Zeus Research, told Decrypt.

There is a “rapid realignment of tech talent,” where demand has surged for roles in AI while “legacy and routine positions are being pared back,” he added.

This week, workplace software firm Atlassian confirmed it will cut about 1,600 jobs as it shifts resources toward AI. That followed Jack Dorsey’s payments company Block, which runs the Bitcoin-focused Cash App, also cutting over 4,000 staff last week as it reorganizes around AI tools and automation.

Uncomfortable truths

What’s happening “isn’t just a Big Tech story,” Ryan Yoon, senior analyst at Tiger Research, told Decrypt.

“Organizations are choosing to do fewer things with smaller, more focused teams,” Yoon said.

OP Labs, the developer behind Optimism, also cut staff earlier this week as Ethereum scaling strategies shift and activity moves toward rival networks such as Coinbase’s Base.

“The uncomfortable truth: if you've automated your own workflow, you've also made the case for eliminating your role,” he added.

“This is a long time coming, it’s a matter of if not when,” Berna Misa, deal partner at Broady Ventures, told Decrypt, pointing to trackers for the trend.

One such site, jobloss.ai, tracks layoffs where artificial intelligence is cited as a contributing factor, estimating about 76,800 AI-linked job losses globally, including roughly 66,400 in the U.S.

The tech sector “has always been the sector that is most disrupted by its own creations,” Luis Buenaventura, president at the Blockchain Council of the Philippines, told Decrypt. “This is because it's often also its own first customer.”

AI coding tools, for instance, are making experienced developers “lethally productive,” reducing the need for large teams of junior engineers and quality assurance staff, Buenaventura explained.

As a result, companies launching new projects may hire fewer people and focus on senior developers with “real-world experience that AI cannot currently simulate,” he said.

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