"AI made us do it" is big tech's new layoff rationale

Posted under: AI technologies
Date: 2024-01-19
"AI made us do it" is big tech's new layoff rationale

Big tech companies are pointing to a renewed focus on AI as a justification for layoffs. The new trend in tech company layoffs could be less about replacing workers with AI and more about replacing workers with a smaller number of workers who are more skilled in AI for now. Last week and again this week, Google laid off hundreds of workers to focus more on AI. According to Layoffs.fyi, 58 tech companies have laid off 7,785 employees already in Q1 2024. Muddu Sudhakar, co-founder and CEO of generative AI solutions company Aisera, told Axios that he's seeing a ""huge displacement of white-collar workers"" in basic software developer jobs as well as database administrator roles. When company layoff announcements come in waves, spokespeople often give the same reasoning for layoffs. Last year, the shared refrain was ""the macroeconomic climate,"" and now many tech companies are saying layoffs are a result of a ""renewed focus on AI.""

Read more at: www.axios.com