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Companies are blaming AI for job cuts. Critics say it’s a ‘good excuse’

Companies are blaming AI for job cuts. Critics say it’s a ‘good excuse’

by | Oct 19, 2025 | Technology | 0 comments

From tech giants to airlines, major global companies are cutting staff as artificial intelligence reshapes workplaces, leaving employees anxious about the future. However, experts warn that AI may be used as a convenient excuse for downsizing rather than the sole driver of layoffs.

Last month, Accenture announced a restructuring plan, emphasizing rapid exits for workers who cannot quickly reskill in AI. Shortly after, Lufthansa revealed plans to eliminate 4,000 jobs by 2030, citing AI-driven efficiency improvements.

In September, Salesforce cut 4,000 customer support roles, claiming that AI could handle 50% of their work. Similarly, fintech firm Klarna reduced staff by 40% as it embraced AI tools, while Duolingo announced it would gradually replace contractors with AI-powered solutions.

Despite these headlines, Fabian Stephany, assistant professor of AI and work at the Oxford Internet Institute, cautions that layoffs may have more complex causes. According to Stephany, companies are increasingly “scapegoating AI” to justify difficult business decisions, rather than these cuts reflecting genuine efficiency gains.

“I’m really skeptical whether the layoffs that we see currently are really due to true efficiency gains,” Stephany told CNBC. “It’s rather really a projection into AI in the sense of, ‘We can use AI to make good excuses.’”

By positioning themselves at the forefront of AI adoption, companies can appear innovative while concealing underlying reasons for workforce reductions, including overhiring during the COVID-19 pandemic or financial pressures. “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,” Stephany added.

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