A recent tweet by web app developer Matt Popovich has ignited discussion regarding the true motivations behind recent corporate layoffs, asserting that executives are "lying through their teeth" when attributing job cuts to artificial intelligence. Popovich's statement, posted on social media, reflects a growing skepticism among observers about the transparency of corporate restructuring announcements. The tweet directly challenges the narrative often presented by companies regarding workforce reductions.
"Pay attention to which corporate executives were saying 'we’re laying off because of AI'. In case it wasn’t already clear, they were lying through their teeth," Popovich stated in his widely circulated tweet. This sentiment resonates amidst a period of significant workforce adjustments across various industries, particularly in the tech sector. His comment suggests that AI is being used as a convenient justification rather than the sole underlying cause for job eliminations.
While some corporate leaders have indeed linked workforce reductions to efficiency gains enabled by AI, or have announced significant investments in AI alongside layoffs, direct attribution remains contentious. Amazon CEO Andy Jassy, for instance, indicated that AI would "reduce our total corporate workforce" over time, while Google announced layoffs in its ad sales team, with an executive memo referencing the "profound moment we're in with AI." Microsoft also saw significant layoffs, with its CEO Satya Nadella noting that 30% of the company's code is now AI-written.
However, data from various analyses suggests that AI is not the primary driver for the majority of recent layoffs. According to the job and hiring consultancy Challenger, Gray & Christmas, only 20,000 out of 286,679 planned layoffs this year were linked to automation, with a mere 75 explicitly attributed to AI. Furthermore, a survey by organizational design platform Orgvue revealed that while 4 in 10 business leaders laid off employees due to AI, 55% of those admitted they made the wrong decisions, citing a lack of clear policies and expertise in AI deployment.
Many companies are grappling with the aftermath of pandemic-era overhiring and broader economic adjustments, with restructuring and cost-cutting often cited as key reasons for workforce reductions. Some executives have expressed regret over hasty AI-driven layoff decisions, indicating a learning curve in integrating new technologies without fully understanding their workforce impact. The debate continues on whether AI primarily replaces jobs or instead augments human capabilities, leading to new roles and increased productivity.