Work Guru Says Firms Blaming AI for Layoffs Are Really Driven by Fear

Corporations blaming generative AI for layoffs could also be lacking the true story.

Thomas Roulet, a professor of organizational sociology and management on the College of Cambridge, mentioned in a LinkedIn put up on Sunday that whereas companies, particularly in tech {and professional} companies, are pointing to generative AI as the explanation for a latest spate of job cuts, the true driver is concern of creating the flawed transfer.

“We hear rather a lot about companies shedding staff whereas blaming GenAI,” he wrote, “however the broader perspective is that companies are reluctant to make any HR decisions with such a excessive degree of uncertainty.”

That hesitation, he added, may have long-term results on how staff construct wealth.

“It can additionally definitely have an effect on profession mobility, which is a vital facet of human capital growth,” he mentioned.

Thomas Roulet did not instantly reply to Enterprise Insider’s request for additional remark.

Layoffs throughout industries for various causes

Roulet’s feedback come as corporations throughout industries, particularly in tech {and professional} companies, are providing starkly totally different rationales for layoffs.

At AI-first outlets, cuts are framed as retooling for AI.

Elon Musk’s xAI shrank its generalist data-annotation ranks by a 3rd whereas “surging” specialist AI tutor roles by 10 times to coach Grok, whereas Snorkel AI trimmed 13% of its workers because it “deprioritized some legacy areas” and guarded most AI jobs.

Massive Tech, in the meantime, usually pairs reductions with an AI pivot or self-discipline push.

Microsoft and Salesforce minimize workers while hiring for AI-focused products; Meta is explicitly “raising the bar on performance” and shifting out what it referred to as “low performers,” whereas Workday and HPE say reductions align value buildings with an AI-centric technique.

Against this, some professional-services companies cite workforce dynamics fairly than tech.

PwC laid off about 2% of its US workforce in Could on account of “historically low” attrition, which leaves too few pure exits.

And within the AI infrastructure and data-labeling area of interest, Scale AI‘s cuts have been tied to overhiring, profitability, and shifting buyer dynamics.