Corporate leaders across industries are increasingly pointing to artificial intelligence (AI) as the cause of recent layoffs. They claim that automation and generative‐AI tools have made certain roles obsolete, and thus layoffs are simply an inevitable consequence of technological progress. However, the piece argues that this narrative is more of a cover story than the full truth. While AI may play a role, many firms are using it as a pretext for cost-cutting, organizational restructuring and risk avoidance in times of uncertainty.
Many experts highlighted in the article suggest that the real driver of these dismissals is corporate fear—fear of mis-steering investments, of being seen as behind the curve, of managing an oversized workforce that no longer aligns with strategic priorities. In such an environment, companies choose to trim headcount under the banner of “AI readiness” even when they lack fully-developed automation tools. The article emphasises that layoffs often happen not because AI has already replaced workers, but because companies anticipate it, or want to reposition themselves arbitrarily.
The article also warns of the consequences for employees and labour markets. When companies invoke AI as the reason for cuts, it obscures underlying issues such as poor planning, over-hiring, shifting business models and economic headwinds. For workers, this shifts the conversation from retraining or re-skilling (for real automation) to simply surviving the next restructuring wave. It also weakens bargaining power, as the narrative becomes “your job was made irrelevant by machines” rather than “we changed strategy and chose to exit this line of business.”
In conclusion, the article urges readers to treat the “AI caused layoffs” story with scepticism. While AI undoubtedly changes work-structures, its invocation as the main reason for dismissals often masks broader strategic choices and risk-management behaviours by companies. The message is clear: don’t take at face value the explanation that AI replaced your job—look deeper into whether your role was part of a larger business pivot or cost-reduction move.
