From tech giants to global airlines, major corporations are cutting jobs—and increasingly pointing to artificial intelligence (AI) as the reason. But critics argue that AI is being used as a convenient cover for deeper business challenges.
In recent months, a wave of high-profile layoffs has coincided with bold claims about AI’s transformative power. Accenture announced a restructuring plan that offers quick exits to employees who can’t rapidly reskill in AI. Lufthansa revealed plans to eliminate 4,000 jobs by 2030, citing AI-driven efficiency gains. Salesforce cut 4,000 customer support roles in September, asserting that AI now handles half the company’s work. Fintech firm Klarna slashed its workforce by 40%, while language-learning app Duolingo said it would phase out contractors in favor of AI tools.
Yet, experts question whether AI is truly the driving force behind these cuts.
Fabian Stephany, assistant professor of AI and Work at the Oxford Internet Institute, argues that companies are “scapegoating” AI to justify difficult decisions. “I’m really skeptical whether the layoffs we see are due to real efficiency gains,” he told CNBC. “It’s more about projecting an image of innovation—using AI as an excuse.”
According to Stephany, many firms—particularly those that thrived during the pandemic—may have simply overhired. “Duolingo or Klarna are prime examples,” he said. “There was overhiring during the pandemic, and now we’re seeing a market correction. Instead of admitting they misjudged hiring needs years ago, they blame AI.”
This narrative is gaining traction online. Jean-Christophe Bouglé, co-founder of Authentic.ly, wrote in a widely shared LinkedIn post that AI adoption in large corporations is moving far slower than headlines suggest—sometimes even being rolled back due to cost or security concerns. “At the same time, there are big layoff announcements ‘because of AI,’” he noted. “It looks like a convenient excuse, especially as economies slow down.”
The fear is real—and it’s being amplified by corporate messaging. Career coach Jasmine Escalera says companies’ lack of transparency is “feeding the fear of AI.” When firms publicly attribute layoffs to AI, she warns, it fuels anxiety among workers worldwide. “Employees are already scared,” she said. “Now, companies are openly saying, ‘We’re doing this because of AI,’ which only intensifies the panic.”
Some companies have pushed back on the narrative. A Salesforce spokesperson clarified that its AI agent, Agentforce, reduced customer support cases, making it unnecessary to refill certain roles—but emphasized that hundreds of affected employees were redeployed internally. Klarna’s CEO, Sebastian Siemiatkowski, acknowledged on X (formerly Twitter) that while AI played a role, the company’s workforce reduction—from 5,500 to 3,000 over two years—was also driven by restructuring and natural attrition.
Meanwhile, Lufthansa and Accenture declined to elaborate on their AI strategies, and Duolingo did not respond to requests for comment.
**But Are Mass AI Layoffs Actually Happening?**
New data suggests the reality may be less dramatic than the headlines imply. A recent report from The Budget Lab at Yale University analyzed U.S. labor market trends from November 2022 to July 2025 and found little evidence of widespread job disruption from AI. Using a “dissimilarity index” to track shifts in occupational employment since ChatGPT’s debut, researchers concluded that AI’s impact so far pales in comparison to earlier technological revolutions like the rise of computers or the internet.
Similarly, a September study by New York Fed economists found that while AI adoption is growing—40% of service firms and 26% of manufacturers now use AI—very few are using it to cut jobs. Only 1% of service firms cited AI as the reason for layoffs in the past six months, down from 10% in 2024. In contrast, 35% reported using AI to retrain workers, and 11% even hired more staff as a result.
Stephany echoes this cautious outlook. “There’s no strong evidence of mass technological unemployment due to AI,” he said. “Historically, every wave of automation has sparked fears of job apocalypse—but instead, it’s led to new industries and roles. No one predicted social media influencers or app developers before the internet.”
While AI will undoubtedly reshape work, experts urge companies to be honest about their motives. Blaming AI for layoffs may offer short-term PR cover—but it risks deepening worker distrust and stoking unnecessary fear in an already uncertain economic climate.