Layoffs due to AI that had nothing to do with AI at all

An employee said their company described recent job cuts as AI-driven but later on revealed a shocking truth. This has raised questions about how firms frame restructuring and its effect on workplace trust.

In Short

• Employee says AI was blamed, but layoffs linked to lost business
• Roles cut were reportedly tied to a major client exit
• Post raises doubts about “AI-driven layoff” narratives

A workplace post has sparked discussion about how companies explain layoffs, especially when 'AI' is used as the reason.

In a Reddit post, an employee shared how a round of job cuts initially appeared to be linked to artificial intelligence, but later events inside the company told a very different story.

According to the employee, the organisation recently went through multiple layoffs affecting QA automation staff, developers, and business teams.

The initial explanation given internally was that “we can do more with AI, so we don’t need as many people.” This message, as the employee described, immediately created tension and uncertainty across the workforce.

WHEN THE STORY DIDN’T ADD UP

However, the situation shifted during a later town hall meeting.

The employee wrote that executives casually mentioned, “oh yeah, by the way, we lost a huge chunk of our business starting next month, but don't worry, we have plans to replace that lost business, we'll talk more about it later.”

What stood out was not just the announcement, but the timing. The employee noted that the people who were laid off had worked in roles directly connected to that large client.

As they observed, “purely coincidentally, I’m sure, all of the people cut worked in roles related specifically to this large client that we lost.”

AI OR BUSINESS REALITY?

The employee’s post highlights a growing workplace debate, whether AI is always the real reason behind layoffs or sometimes a convenient explanation.

While AI tools are changing how companies operate, the employee suggested that in this case, the cuts appeared more aligned with business loss than automation replacing jobs.

They referenced broader discussions on the topic, noting how narratives around AI can sometimes overshadow more traditional reasons like revenue decline or client loss.

A SHIFT IN HOW CUTS ARE EXPLAINED

The employee ended their post by saying they were not trying to debate AI’s capabilities, but found the situation revealing.

They wrote that it “definitely increased my scepticism about the ‘replaced by AI’ narrative,” adding that employees should look closely at what is actually happening behind the scenes when companies announce restructuring.

- Ends