Is It Unfair to Blame AI for Layoffs? Sure
October 30, 2025
When AI exploded onto the scene, we were promised the tech would help workers, not replace them. Then that story began to shift, with companies revealing they do plan to slash expenses by substituting software for humans. But some are skeptical of this narrative, and for good reason. Techspot asks, “Is AI Really Behind Layoffs, or Just a Convenient Excuse for Companies?” Reporter Rob Thubron writes:
“Several large organizations, including Accenture, Salesforce, Klarna, Microsoft, and Duolingo, have said they are reducing staff numbers as AI helps streamline operations, reduce costs, and increase efficiency. But Fabian Stephany, Assistant Professor of AI & Work at the Oxford Internet Institute, told CNBC that companies are ‘scapegoating’ the technology.”
Stephany notes many companies are still trying to expel the extra humans they hired during the pandemic. Apparently, return-to-office mandates have not driven out as many workers as hoped. The write-up continues:
“Blaming AI for layoffs also has its advantages. Multibillion- and trillion-dollar companies can not only push the narrative that the changes must be made in order to stay competitive, but doing so also makes them appear more cutting-edge, tech-savvy, and efficient in the eyes of potential investors. Interestingly, a study by the Yale Budget Lab a few weeks ago showed there is little evidence that AI has displaced workers more severely than earlier innovations such as computers or the internet. Meanwhile, Goldman Sachs Research has estimated that AI could ultimately displace 6 to 7 percent of the US workforce, though it concluded the effect would likely be temporary.”
The write-up includes a graph Anthropic made in 2023 that compares gaps between actual and expected AI usage by occupation. A few fields overshot the expectation– most notably in computer and mathematical jobs. Most, though, fell short. So are workers really losing their jobs to AI? Or is that just a high-tech scapegoat?
Cynthia Murrell, October 30, 2025
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