#ailayoffs

The author criticizes tech CEOs for mass layoff decisions. He argues against replacing employees with artificial intelligence. The article highlights flaws in current leadership strategies. Many leaders are misguidedly following this layoff trend. The author urges a reevaluation of these workforce reduction tactics.

https://www.inc.com/joe-procopio/the-flaws-in-mass-layoffs-for-ai-productivity-are-beyond-obvious-now/91351132

https://www.bankingdive.com/news/wells-fargo-ceo-scharf-ai-employment-banking-jobs/821368/

Fear of AI is at an all-time high. Not fear of a Skynet-style superintelligent singularity seizing power, generally speaking, but of something perhaps just as horrifying: that life under capitalism continues much as it always has, with one key difference — AI has made human labor obsolete.

A new survey by consulting firm Mercer polled nearly 1,000 executives across the United States. A jaw-dropped 98 percent of them said they have major organization design changes in the works around AI, while 99 percent expect AI will lead to layoffs over the next two years.

The Mercer report, first covered by TechSpot, also found a collapse in worker wellbeing as talk of AI dominates break rooms. In 2024, Mercer worker’s sentiment found 66 percent of employees surveyed said they are “thriving” in the workplace. By 2026, that number had fallen to just 44 percent.

At the same time, the number of workers who report being “unsatisfied” has skyrocketed, with over 20 percent of workers surveyed admitting they’re “unsatisfied but… don’t have a choice at this point and will be staying for the next 12 months​.”

How human resources managers plan to combat this workplace fatigue — symptomatic of a rapidly decaying labor market, not to mention stagnant wages across the board — is equally alarming. In the next two years, 49 percent of HR professionals say incorporating worker sentiments with behavioral data will become “critical” to managing labor on the job. A further 44 and 43 percent said the same of always-on surveillance platforms and AI chatbots, respectively.

To the business owners and corporatists of the world, this is the point of AI: to discipline human labor. That’s the large-scale economic process by which capitalists undermine workers’ bargaining power, through systemic mechanisms like debt, the so-called gig economy, unemployment, deskilling — and, according to some theorists, even the nuclear family.

In the workplace and outside of it, AI boosts these mechanisms, eroding workers’ power to demand change or even hold onto basic concessions like healthcare and pensions — labor rights begrudgingly pried from corporations after decades of workplace struggle.

The technology doesn’t even need to be particularly effective to achieve any of this. Business leaders like Shopify CEO Tobi Lutke are already using AI to squeeze more value from their workers, while venture capitalists use it to pry equity back from theirs. In some cases, managers are even using AI chatbots to decide who to fire.

In all, the picture is pretty grim. The richest men and women in the world have made it abundantly clear why they want AI. The tech may not be living up to their wild expectations quite yet, but they’re still unleashing it without hesitation. The only question is how workers respond now, before that hellish dystopia we all fear becomes our reality.

https://futurism.com/artificial-intelligence/99-percent-ceos-workers-ai-survey

You may now understand why employees' dissatisfaction at Dell sunk and will keep sinking.

San Francisco-based Webflow announced layoffs on Wednesday. Employees were abruptly locked out of company accounts without warning. CEO Linda Tong stated AI tools transformed website development. This prompted a difficult decision to restructure the team. The exact number of affected workers remains unclear.

San Francisco, California

https://www.sfchronicle.com/tech/article/webflow-layoffs-tech-san-francisco-22279561.php

AI adoption continues to drive layoffs across the technology sector. Microsoft, Amazon, and Oracle have publicly linked job cuts to AI. Meta reportedly eliminated 8,000 roles in an AI-focused restructuring. Meanwhile, demand for cybersecurity experts has surged significantly. Organizations are bolstering security teams due to AI vulnerability risks.

https://letsdatascience.com/news/cybersecurity-hiring-surges-amid-ai-driven-tech-layoffs-58b7acb5

Tech Firms and Large Employers just now realizing cost of compute is higher than paying human workers.
Nvidia VP Bryan Catanzaro told Axios that for his team, compute costs now run far beyond what his employees cost. Uber's CTO burned through his entire 2026 AI budget on coding tools alone — and that was by April. (Axios)
OpenClaw creator Peter Steinberger claimed that his team spent more than $1.3 million in token costs in just a single month. Because of this, it’s now apparent that using AI is more expensive than hiring people, especially since it offers only limited productivity gains at the moment.
Despite no clear evidence of AI improving productivity and no widespread data supporting the idea of AI displacing jobs, big tech firms have committed $740 billion in AI capital expenditures this year — a 69% jump from 2025. That spending has coincided with more than 92,000 tech layoffs in 2026 so far. (Fortune) So companies are simultaneously spending more on AI, laying people off, and discovering the math doesn't pencil out the way they projected.

We will be no exception. Make sure you're prepared for when it happens, because this will be one situation when finding something new will be nearly impossible, with all the workers flooding the job market.

Cold....hard.....facts. Their massive AI Infrastructure-Related Securities Suit aside.

https://www.youtube.com/watch?v=zECyMRI8sV4

I mean, once AI gets exposed as an overhyped, expensive, hallucinating toy?

Survey reveals that 99% of CEOs now expect AI-driven layoffs — companies are racing to replace junior workers with AI, even as many executives remain uncertain about the returns on AI investments | Tom's Hardware

Survey reveals that 99% of CEOs now expect AI-driven layoffs — companies are racing to replace junior workers with AI, even as many executives remain uncertain about the returns on AI investments

A recent study by consulting firm Mercer has revealed that an unprecedented 99% of CEOs envision AI-driven layoffs in the short term. The survey, which covered 12,000 C-suite executives, HR leaders, employees, and investors, showed that an overwhelming majority of executives expect AI "to lead to at least some headcount reduction in the next two years." At the same time, work and economic anxiety are increasing among employees, while workplace well-being has plummeted, with the portion of workers reporting that they "feel good at work" dropping from 66% in 2024 to just 44%.

The report also revealed that young professionals, aged 22 to 27, face the highest risk of job displacement as CEOs target simple tasks that typically served to train new hires. Because generative AI excels at codifiable, routine entry-level tasks, companies are slowing down traditional junior hiring pipelines. Standard Chartered recently announced plans to cut 7,000 jobs to replace ‘lower-value human capital’ and focus on automation.

Confirming the trend is another report from the consulting firm Oliver Wyman, based on a global survey of CEOs. The Oliver Wyman report revealed that the number of companies actively reducing junior/entry-level roles spiked from 17% to 43% in a single year due to automation.

Whether massive AI adoption and the resulting trends are worth it remains to be seen. Around 40,000 tech industry employees lost their jobs in the first quarter of 2026. Despite such trends, the Mercer report found that only 32% of surveyed executives believe their companies can effectively combine human labor with AI systems, even as they heavily push for AI to maximize return on investment.

Oliver Wyman’s report shows that AI was a top-three priority for most CEOs, with more 90% confirming the deployment or intention to deploy AI in their companies. Conversely, more than 50% say they can’t yet tell whether this AI deployment is actually delivering on the expected productivity gains.

A mere 27% of CEOs said the return on AI investment had actually met or exceeded expectations, down from 38% the previous year. Nearly 25% said they had seen absolutely no impact on revenue. The report suggests that the realities of redesigning entire workflows may be curbing AI enthusiasm, even as the worrisome trends continue.

While massive corporations like Amazon, Accenture, and Meta continue to announce thousands of job cuts tied to automation, macroeconomic data reveal a more complex narrative. Data highlighted by Fortune shows that automation-driven layoffs have frequently failed to deliver promised financial returns or measurable productivity gains.

Another interesting narrative is an AI smokescreen. Reports from labor analysts like Challenger, Gray & Christmas indicate that while AI is the most frequently cited reason for job cuts, many experts believe tech CEOs are using AI as a smokescreen to mask deeper internal struggles, corrections to overhiring, and shifts toward outsourcing.

In many ways, the reports paint a picture of a corporate world charging headfirst into an AI transformation it barely understands. Companies are cutting entry-level roles that traditionally trained the next generation of workers, even as many executives privately admit they still cannot prove the technology delivers meaningful returns. If the trend continues, an entire generation could find itself shut out of the traditional career pipeline altogether — trapped in a labor market that increasingly demands experience while simultaneously eliminating the jobs designed to provide it.

Proponents argue that humanity as a whole has always emerged unscathed and better off after massive technological revolutions, despite initial fears and shake-ups. On the other hand, opponents argue that a zoomed-in view of the actual impact such changes have is necessary for ethical implementation. We recently reported that a Chinese court ruled that companies cannot replace workers simply because “AI can do a better job.”

https://www.tomshardware.com/tech-industry/artificial-intelligence/survey-reveals-that-99-percent-of-ceos-now-expect-ai-driven-layoffs-companies-are-racing-to-replace-junior-workers-with-ai-even-as-many-executives-remain-uncertain-about-the-returns-on-ai-investments

👍

its all going away.

On Wednesday over 20 employees in IT were laid off. Management bringing in replacements on H-1B visas from India and Canada.

Thousands of IT employees across the University of California system recently unionized. They joined the University and Professional Technical Employees (UPTE) union. This expansion created the largest tech worker union in the United States. The union focuses on AI governance, layoff protections, and wage increases. Workers now have a collective say in new AI tool implementation and job security.

California

https://www.bloodinthemachine.com/p/they-just-formed-the-biggest-tech

https://www.foxnews.com/tech/ai-layoffs-may-backfiring-companies
anyhow the article says AI related RIFs may not be payng off...

Gartner found many companies cutting workers while adopting AI are not seeing stronger ROI (ok, as expected) and the better results come from using AI to help employees work faster and smarter.

The main point is that layoffs can free up budget but cos still need skilled people... clean data, and human judgment to make AI useful...

Has Al increased the probability for layoffs at Oxy?

Just read this…. That is all I’m going to say.

https://nypost.com/2026/05/21/business/jamie-dimon-says-jpmorgan-will-hire-more-ai-braniacs-fewer-bankers/

Not directly connected to Oracle but many companies in the industry are going this way. The world has changed this year…
—-
ZEB EVANS (CEO - ClickUp)

Today we reduced headcount by 22%. The business is the strongest it's ever been. So I think it's important to be direct about what I'm seeing and why.

First, I made this decision and I own it. I did it because the way to operate at the highest level of productivity is changing, and to win the future, ClickUp needs to change with it.

Second, this wasn't about cutting costs. Most savings from this change will flow directly back into the people who stay. We'll be introducing million-dollar salary bands. If you create outsized impact using AI, you'll be paid outside of traditional bands.

Most importantly, I have the deepest gratitude for those affected. We're doing this from a position of strength specifically so we can take care of people properly. Everyone affected receives a package aimed at honoring their contributions and easing the transition.

I only see two options: wait for this to play out gradually in the market or be honest about what I'm seeing and act proactively.

THE 100X ORGANIZATION
The primary change is that we're restructuring around what I call 100x org. The goal is 100x output. The roles required to build at the highest level are fundamentally different than they were a year ago.

Incremental improvements to existing systems won't get us there. We need new ones. That means creating enough disruption to rebuild rather than iterate on what's already broken.

The common narrative is that AI makes everyone more productive. It doesn't. Many of the workflows of today, if left unchanged, create bottlenecks in AI systems.

These roles will evolve. But waiting for that to happen naturally means falling behind now.

The 100x org is actually heavily dependent on people - infinitely more than today. This is only possible with 10x people that have embraced and adopted new ways of working.

THE BUILDERS, AGENT MANAGERS, AND FRONT-LINERS

— THE BUILDERS: 10X ENGINEERS
I don't think most companies have internalized what's actually happening with AI in engineering. The common narrative is that AI makes all engineers more productive. That may be true in isolation, but at an organization level - that is the farthest thing from reality.

Here's what we've validated recently at ClickUp: the great engineers, the ones who can orchestrate, architect, and review, are becoming 100x engineers. They're not writing code. They're directing agents that write code. The skill is judgment.

AI makes the best engineers wildly more productive, and everyone else using AI slows these engineers down.
Think about it - the bottlenecks are (1) orchestration - telling AI what to do, and (2) reviewing - what AI did. Everything is leapfrogged and no longer needed.
So who do you want orchestrating and reviewing code?

And how do you want your best engineers to spend their time?

If your best engineers are spending time reviewing other people's code, then this is inherently an inefficient bottleneck. These engineers can review their agent's code much faster than reviewing human code.

The new world is about enabling your 10x engineers to become 100x.

The wrong strategy is to push every engineer to use infinite tokens. Companies doing this are celebrating 500% more pull requests. But customer outcomes don't match the volume of code being generated.

I call this the great reckoning of AI coding, and every company will face this soon if not already.

More code is just another bottleneck to the best engineers, and ultimately to your company's impact as well.

— THE BUILDERS: 10X PRODUCT MANAGERS
Product management and design roles are merging.

Designers that have customer focus, become more like product managers.

And product managers that have intuition for UX become more like designers.

The bottleneck of user research is gone. It takes us just one mention of an agent to kickoff research and analyze results.

The bottleneck of product design iteration is also gone. The product builder iterates on their own, along with agents and skills that ensure alignment with quality and strategy.

Also controversial today - I believe that the wrong strategy is to have your PMs shipping code - that just introduces another bottleneck that the best engineers will waste their time on.

To be clear, PMs should be coding but they should do this in a playground to iterate, validate, and scope. That code should not go to production.

Everything outside of managing systems, orchestrating AI, and reviewing output becomes a bottleneck.
That's why the other roles that are critical along with these are the systems managers (to reduce bottlenecks) along with a bottleneck you can't replace - customer meeting time.

— THE SYSTEM MANAGERS
Ironically, the people that automate their jobs with AI will always have a job. They become owners of the AI systems - agent managers. We have many examples of these people at ClickUp.

The underlying systems in which we operate are absolutely critical to get right. I think most companies are delusional to think they can iterate on existing systems and compete in this new world.

You must create enough disruption so that old systems are deprecated entirely. If there's any definition for 'AI native' that's what it is.

— THE FRONT-LINERS
In a world that will become saturated with AI communication, the human touch will matter more than anything to customers.

This is a bottleneck that you shouldn't replace - even when agents are high enough quality to do video meetings.

One-on-one meeting time with customers is something that shouldn't be automated. The systems around the meetings should be - so that front-liners spend nearly 100% of their time with customers.

REWARDING 100X IMPACT
In a world where companies are able to do so much more with less, where does that excess money go?
In our case, much of the savings in this new operating model will flow directly back to those that enabled it.

We must reward people that create productivity accordingly. This aligns incentives on both sides. Plus, in a world where your best people create 100x impact, you can't afford to lose them.

You should aim to retain these employees for decades. The context they have and their ability to efficiently orchestrate and review will be nearly impossible to replace.

Compensation bands of today should be thrown out the door. We're introducing $1 million cash/year salary bands with a path available to nearly everyone in the company if they produce 100x impact by creating or managing AI systems.

THE FUTURE
Nearly every company will make changes like these. The ones that do it proactively will define what comes next.

The future is not fewer people. It's different work, new roles, and better rewards for those who embrace it. We're already seeing entirely new roles emerge, like Agent Managers, that didn't exist a year ago.

ClickUp is positioning to lead this shift, not just internally, but for our customers too. I've never been more certain about where we're headed.

https://x.com/dj_curfew/status/2057522382315929802

Everyone is watching the layoffs but only some are paying attention to the real issue -hiring has slowed dramatically...

The headlines make it sound like AI is eliminating jobs overnight. The actual labor data tells a more tricky story. Layoffs are still relatively close to pre-pandemic norms. What has changed is that companies are hiring less aggressively, which makes it much harder for people entering the market, changing jobs, or recovering from layoffs.

There is also a growing amount of what even industry leaders are calling “AI washing” - companies attributing cuts to AI when the underlying causes may include overhiring, cost pressure, restructuring, or shareholder expectations.

That does not mean AI is not changing work. It clearly is. But the broader employment picture right now looks more like a low-hire, low-fire environment than a mass AI replacement event.

The practical takeaway for companies and employees is probably this: focus less on the headline layoffs and more on adaptability, skill alignment, and where actual hiring demand still exists.

Source: Washington Post article on the current labor market and AI-related layoffs.
https://finance.yahoo.com/economy/articles/what-layoffs-hide-about-the-real-problem-with-the-job-market-105409943.html

Workers anticipate increased job stress. This stress is projected for the year 2026. Fears of potential layoffs contribute to this anxiety. The rise of artificial intelligence also plays a role. These concerns are impacting the workforce.

https://www.usatoday.com/videos/money/economy/2026/05/21/job-stress-surges-in-2026-as-workers-fear-layoffs-and-ai/90194523007/

https://qz.com/meta-layoffs-8000-jobs-ai-restructuring-052026

https://www.businessinsider.com/list-companies-replacing-human-employees-with-ai-layoffs-workforce-reductions

AI investment has reached $1.5 trillion since late 2022. This sum equals the projected 2027 U.S. defense budget. The finance sector experienced 49,000 layoffs due to AI in 2026. Industry experts believe AI will augment finance workers. Human judgment and oversight remain crucial for sound financial decisions.

https://www.thestreet.com/employment/amazon-microsoft-google-power-ai-behind-49000-finance-layoffs

How big is the layoff in India ? Any idea? Did they cut squad leaders, scrum masters there or not?

Arthur Hayes spoke at Consensus Miami. He is the BitMEX co-founder and Maelstrom CIO. Hayes predicted AI-driven layoffs could cause a banking crisis. He believes Bitcoin is already reflecting this potential crisis. Hayes also shared his BTC price target and Hyperliquid conviction.

https://finance.yahoo.com/video/arthur-hayes-says-ai-layoffs-171456843.html

Details are sketchy at best. But it seems like multiple teams in Palo Alto have been ask to put together a "prove their worth" presentation. My direct manager is as lost as I am, but it seems to have come down from above and involves the use of AI. My feeling is this is the start of infomraton probing, Hock has also been meeting with some directors. Something dosen't feel right, but I hate to jump to conclusions. Anyone else having this BS happen or is it isolated?

Just wait until the AI bubble bursts and companies realize it can’t do half the things they expected it to do, and that in a lot of cases it’s actually slowing people down instead of helping. I don’t know if this leadership is capable of that kind of reflection, but maybe then they’ll think about all the talent and institutional knowledge they pushed out in the rush to chase AI.

Does Ford feel like they're ready to jump on this AI downsizing bandwagon? We are a tech company now.

A new study investigated the financial impact of AI-driven layoffs. Eighty percent of surveyed executives admitted to reducing staff for AI investments. These companies saw no greater financial gains than those retaining employees. Many sacrificed institutional knowledge and goodwill without detectable returns. Companies using AI to amplify employee efficiency achieved the most significant gains.

https://futurism.com/artificial-intelligence/layoffs-ai-automation-backfire

A Gartner study challenges the expected profits from AI-driven layoffs. Many organizations reducing staff with AI found little direct return on investment. The research surveyed 350 large global enterprises. Strongest AI returns came from enhancing employee productivity, not eliminating workers. Companies often underestimate hidden costs and the need for human oversight.

Ann Arbor, Michigan

https://mitechnews.com/artificial-intelligence/ai-layoffs-may-not-be-delivering-the-payoff-ceos-expected-gartner-study-finds/

Every CEO needs a good story to tell Wall Street to justify a higher stock price. Hans & company claimed that they had an edge over the competition with mmWave 5-Yee. Dan & company claim AI gives them that edge. In any event, you can expect more layoffs in the future.

https://www.thestreet.com/employment/verizon-ceo-cuts-to-the-chase-new-layoffs-ai-future

Starbucks laid off today (not relocated to Nashville) 61 tech jobs in their Tech Support Center. AI continues to claim the tech industry in the greater Seattle area. Even less places for the laid off Seattle Tech Support folks to go.

Cool. Cool, cool, cool, cool, cool.

https://startupfortune.com/meta-is-turning-layoffs-into-fuel-for-its-ai-spending-race/

Biotech layoffs are slowing in 2026 compared to the previous year. BioNTech announced a major restructuring, eliminating 1,860 jobs. Vistagen reduced its workforce by 20% after a dr-g trial failure. Replimune cut 224 positions following an FDA dr-g rejection. Takeda and Merck also implemented significant job reductions due to various pressures.

https://www.pharmavoice.com/news/biotech-layoffs-pharma-dr-g-jobs/819649/

U.S. layoffs decreased overall in early 2026. The technology sector experienced a rise in job cuts. Tech companies cut 85,411 jobs this year. This is a 33% increase from the same period last year. Artificial intelligence spending is the main reason cited for these layoffs.

https://www.kron4.com/news/technology-ai/layoffs-down-in-2026-except-in-one-field/

once you are made redundant, are you ready to go back in there? will jobs change or disappear at other companies too because of this AI implementation? "This company's issue isn't profit, it’s growth." The company must grow to remain competitive; if other companies adopt AI and have fewer roles, then this one must do exactly the same and, as it appears, these are years where they are only letting people go. Are you ready for a world where you just can’t make ends meet because no company will ever need a human doing the job? Am I being too catastrophic or simply this issue is not getting addressed enough with governments and the public?

Why the fluff is the active use of AI even a parameter for the feedback we need to give people? Eliza is actual garbage and they’re really force feeding us this so they can layoff the next group that doesn’t use it. Stay woke

A Columbus AI startup will postpone its upcoming tech festival. This decision follows recent layoffs at the company. A pending lawsuit also affects the company. The suit accuses the founder of firing executives. This was allegedly to avoid sharing future profits.

Columbus, Ohio

https://www.dispatch.com/story/news/local/2026/05/05/ohio-tech-entertainment-festival-2026-delayed/89953871007/

Erased due to AI. Although I call bullsh-t. It's not AI. They just want to get rid of as many of us as they can and they're using the latest available excuse. AI creates more work than it saves. I know, I've been dealing with its mistakes for a while now. If AI is really the reason, then this place will go under sooner than anybody thinks.

AI and automation are leading to job reductions in El Paso. HGS Solutions recently laid off 92 workers at its El Paso facility. These job cuts mainly impact customer service and back office positions.

El Paso

https://hoodline.com/2026/05/ai-layoffs-gut-el-paso-paychecks-as-oscars-draw-line-on-robot-scripts/