Companies are blaming AI for job cuts.
From tech to airlines, large global companies have been slashing staff as the real-world impact of artificial intelligence plays out, spooking employees. But critics say AI has become an easy excuse for firms looking to downsize.
Last month, tech consultancy firm Accenture announced a restructuring plan that includes quick exits for workers that aren’t first able to reskill on AI. Days later, Lufthansa said it was going to eliminate 4,000 jobs by 2030 as it leans on AI to increase efficiency.
Salesforce also laid off 4,000 customer support roles in September, saying that AI can do 50% of the work at the company. Meanwhile, fintech firm Klarna has reduced staff by 40% as it aggressively adopts AI tools.
Language-learning platform Duolingo has stated that it will gradually stop relying on contractors and use AI to fill the gaps.
The headlines are grim, but Fabian Stephany, assistant professor of AI and work at the Oxford Internet Institute, said there might be more to job cuts than meets the eye.
Previously there may have been some stigma attached to using AI, but now companies are “scapegoating” the technology to take the fall for challenging business moves such as layoffs.
“I’m really skeptical whether the layoffs that we see currently are really due to true efficiency gains. It’s rather really a projection into AI in the sense of ‘We can use AI to make good excuses,’” Stephany said in an interview with CNBC.
Companies can essentially position themselves at the frontier of AI technology to appear innovative and competitive, and simultaneously conceal the real reasons for layoffs, according to Stephany.
“There might be various other reasons why companies are having to get rid of part of their workforce ... Duolingo or Klarna are really prime candidates for this because there has been overhiring during Corona [Covid-19 pandemic] as well,” the professor said.
Posted on: 10/19/2025 2:15:10 PM
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