Corporations are blaming AI for job cuts. Critics say it’s a ‘good excuse’

From tech to airways, massive international firms have been slashing employees because the real-world influence of synthetic intelligence performs out, spooking staff. However critics say AI has turn out to be a simple excuse for corporations trying to downsize.

Final month, tech consultancy agency Accenture introduced a restructuring plan that features fast exits for staff that are not first capable of reskill on AI. Days later, Lufthansa stated it was going to remove 4,000 jobs by 2030 because it leans on AI to extend effectivity.

Salesforce additionally laid off 4,000 buyer help roles in September, saying that AI can do 50% of the work on the firm. In the meantime, fintech agency Klarna has decreased employees by 40% because it aggressively adopts AI instruments.

Language-learning platform Duolingo has said that it’s going to progressively cease counting on contractors and use AI to fill the gaps.

The headlines are grim, however Fabian Stephany, assistant professor of AI and work on the Oxford Web Institute, stated there could be extra to job cuts than meets the attention.

Beforehand there could have been some stigma connected to utilizing AI, however now firms are “scapegoating” the know-how to take the autumn for difficult enterprise strikes corresponding to layoffs.

“I am actually skeptical whether or not the layoffs that we see at the moment are actually because of true effectivity features. It is relatively actually a projection into AI within the sense of ‘We are able to use AI to make good excuses,'” Stephany stated in an interview with CNBC.

Corporations can basically place themselves on the frontier of AI know-how to look modern and aggressive, and concurrently conceal the true causes for layoffs, in keeping with Stephany.

“There could be numerous different the explanation why firms are having to do away with a part of their workforce … Duolingo or Klarna are actually prime candidates for this as a result of there was overhiring throughout Corona [Covid-19 pandemic] as nicely,” the professor stated.

Some firms that flourished throughout the pandemic “considerably overhired” and the latest layoffs may simply be a “market clearance.”

“It is to some extent firing those who for whom there had not been a sustainable long run perspective and as a substitute of claiming “we miscalculated this two, three years in the past, they will now come to the scapegoating, and that’s saying ‘it is due to AI although,'” he added.

This sample has sparked dialog on-line. One founder, Jean-Christophe Bouglé even stated in a preferred LinkedIn publish that AI adoption is at a “a lot slower tempo” than is being claimed and in massive companies “there’s not a lot taking place” with AI tasks even being rolled again because of price or safety considerations.

“On the identical time there are bulletins of huge layoff plans ‘due to AI.’ It appears to be like like a giant excuse, in a context the place the economic system in lots of international locations is slowing down, regardless of what the unbelievable efficiency of inventory exchanges recommend,” stated Bouglé, who co-founded Genuine.ly.

Jasmine Escalera, a careers professional, stated this concealment is “feeding the concern of AI” with staff globally involved about their jobs being changed because of AI.

“So we already know that staff are scared as a result of firms should not being sincere, open and communicative about how they’re implementing AI,” Escalera informed CNBC Make It. “Now firms are brazenly stating ‘We’re doing this [layoffs] due to AI’ so it is feeding the frenzy.”

Escalera stated huge firms have to be extra accountable as they set the tone for what is the norm in enterprise resolution making and keep away from greenlighting “unhealthy conduct.”

A Salesforce spokesperson clarified to CNBC that the corporate deployed its personal AI agent, Agentforce, which decreased the variety of buyer help instances and eradicated the necessity to “backfill help engineer roles,” they stated.

Klarna directed CNBC to its co-founder and CEO Sebastian Siemiatkowski’s feedback on X the place he defined that the corporate shrank its workforce from 5,500 to three,000 individuals in two years however “AI is barely a part of that story.”

Siemiatkowski linked the workforce discount to slimming down its analytics staff to 1 “success staff,” with many then leaving by pure attrition in addition to the discount of the corporate’s buyer success staff.

Lufthansa and Accenture declined to touch upon the matter and didn’t share any additional particulars on their AI restructuring technique. Duolingo didn’t reply to CNBC’s request for remark.

The Price range Lab, a non-partisan coverage analysis middle at Yale College, launched a report on Wednesday which confirmed that U.S. labor has truly been little disrupted by AI automation for the reason that launch of ChatGPT in 2022.

The lab examined U.S. labor market knowledge from November 2022 to July 2025 utilizing a “dissimilarity index” which measured how a lot the occupational combine—the share of staff in numerous jobs—has shifted since AI’s debut and in contrast it to different technological shifts such because the introduction of computer systems and the web. It discovered that AI hasn’t but brought about widespread job losses.

Moreover, New York Fed economists launched analysis in early September which confirmed that AI use amongst corporations “don’t level to important reductions in employment” throughout the companies and manufacturing business within the New York–Northern New Jersey area.

It discovered that 40% of service corporations stated they had been utilizing AI this yr, up from 25% final yr, whereas manufacturing corporations noticed the same soar from 16% final yr to 26% this yr, however only a few had been utilizing AI to layoff staff.

Just one% of the companies agency reported AI as the explanation for shedding staff up to now six months, down from 10% that had laid off staff utilizing AI in 2024. In the meantime, 12% of companies corporations stated AI made them rent much less staff in 2025.

In contrast, 35% of companies corporations have used AI to retrain staff and 11% have employed extra consequently.

Stephany stated there is not a lot proof from his analysis that reveals massive ranges of technological unemployment because of AI.

“Economists name this structural unemployment, so the pie of labor isn’t sufficiently big for everyone anymore and so individuals will lose jobs positively due to of AI, I do not assume that that is taking place on a mass scale,” he stated.

He added that considerations about know-how placing an finish to human work will be seen all through historical past.

“It reoccurred this century alone a dozen occasions, you’ll be able to return to historic occasions the place Roman emperors put maintain to sure machines as a result of they had been fearful about this and at all times the opposite occurred. The machine made firms, industries extra productive.

“It allowed for the emergence of totally new jobs. If you consider the web 20 years in the past, no one would have identified what a social media influencer is, what an app developer is as a result of it did not exist.”

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