Workflow
Companies are blaming AI for job cuts. Critics say it's a 'good excuse'
CNBC·2025-10-19 05:19

Core Viewpoint - The article discusses the trend of companies announcing layoffs attributed to the adoption of artificial intelligence (AI), suggesting that AI is being used as a scapegoat for broader business challenges and downsizing efforts [2][4][5]. Group 1: Company Layoffs - Accenture announced a restructuring plan that includes layoffs for workers unable to reskill on AI [2]. - Lufthansa plans to eliminate 4,000 jobs by 2030, citing AI as a means to increase efficiency [2]. - Salesforce laid off 4,000 customer support roles, claiming AI can perform 50% of the work [3]. - Klarna reduced its workforce by 40% as it aggressively adopts AI tools [3]. - Duolingo plans to stop relying on contractors and use AI to fill gaps in its workforce [3]. Group 2: Criticism of AI Justification - Critics argue that companies are using AI as an excuse for layoffs rather than genuine efficiency gains [4][5]. - There is skepticism about the actual impact of AI on job cuts, with suggestions that overhiring during the pandemic is a significant factor [6]. - Jean-Christophe Bouglé noted that AI adoption is slower than claimed, and many AI projects are being rolled back due to cost or security concerns [7][8]. Group 3: Employee Concerns - Employees are increasingly fearful of job losses due to AI, exacerbated by companies' lack of transparency regarding AI implementation [11]. - Jasmine Escalera emphasized the need for companies to be responsible in their communications about AI to avoid fostering fear among employees [11]. Group 4: Research Findings - A report from the Budget Lab at Yale University indicated that U.S. labor has not been significantly disrupted by AI automation since the release of ChatGPT in 2022 [14]. - Research from New York Fed economists showed that only 1% of service firms reported AI as a reason for layoffs in the past six months, down from 10% in 2024 [16][17]. - The majority of firms using AI reported it as a tool for retraining employees rather than for layoffs [17].