Stop Blaming AI: The Real Layoff Cause is Managerial
I recently came across a piece that cuts through the noise: "Companies Are Blaming AI for Layoffs. The Real Reason Will Piss You Off." As an engineer, the article resonated, arguing that the cuts are a managerial cover-up—not a technical necessity.
I took the time to check the central claim, and the external data fully supports the insight.
The Real Story is in the Data
- AI Isn't Working: The systems aren't delivering. An MIT study found that 95% of businesses investing in AI are seeing zero measurable ROI. The cuts are happening, but the technology is not successfully replacing the workforce.
- The Actual Cause is Economic: The huge number of layoffs since 2022 comes down to companies overhiring during the pandemic and being forced to cut costs when interest rates rose. Management is using the "AI strategy" narrative to avoid admitting they made poor financial forecasts.
Final Takeaway
This distinction is crucial. When leadership cites an "AI transformation" but skips all the necessary investment and training steps, they are likely using the term as a scapegoat.
The layoffs are an economic decision, not a technical one. For anyone in tech, the article provides essential context for understanding what is actually happening behind the press releases. Go read it.