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Tech companies are blaming massive layoffs on AI. What’s really going on?

In the past few months, a wave of tech corporations have announced significant staff cuts and attributed them to efficiency gains driven by artificial intelligence (AI).

Companies such as Atlassian, Block and Amazon have announced they would lay off thousands of employees due to increased reliance on AI.

The narrative these companies offer is consistent: AI is making human labour replaceable, and responsible management demands adjustment.

The evidence, however, tells a more nuanced story.

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in reply to Andrew Pam

It's not so clever, considering. They need to "prove" the benefits of AI adoption, and boost the value of their stock at the same time by showing "cost reduction". Ironically, they are burning through money like crazy.