Artificial intelligence has become the go-to explanation whenever another major company announces job cuts. Firms such as Oracle, Meta, and Amazon have pointed to efficiency gains, shifting priorities, and the need for fresh investment as reasons for reducing headcount.
As AI adoption accelerates, many workers have been left wondering whether the technology itself is replacing them. However, that narrative is now being challenged by some influential voices in the industry.
Analyst Josh Bersin has argued that companies are making a mistake by focusing on cutting costs rather than improving performance, while Wharton professor Peter Cappelli recently suggested that many organisations are using layoffs to free up resources for data centres or to address financial pressures.
Adding to that debate is Demis Hassabis, the Nobel Prize-winning CEO of Google DeepMind, who believes the real reason behind many layoffs has less to do with AI and more to do with companies following one another's lead.
'Copying' Each Other Rather Than Addressing AI Concerns
Speaking at a recent Google I/O event, Hassabis dismissed the idea that artificial intelligence is the main force driving layoffs across the technology sector. Instead, he argued that many companies are engaging in what he described as 'imitative behaviour'.
According to Hassabis, businesses announcing workforce reductions and attributing those decisions to AI are often reacting to what their competitors are doing. Rather than independently assessing how AI should fit into their operations, they are responding to a growing sense of urgency created by industry trends.
He suggested that a fear of missing out is pushing organisations towards decisions that may not be in their long-term interests. As more companies connect AI investments with workforce reductions, others begin to view the two developments as naturally linked. Hassabis warned that this mindset is becoming increasingly common and described it as 'super worrying'.
The Google DeepMind chief has previously argued that removing people from the workforce to make room for AI reflects a 'lack of imagination'. Instead of viewing technology as a replacement for human talent, he believes companies should be looking for ways to create new opportunities and make better use of their existing workforce.
His comments come at a time when layoffs continue to affect the technology industry. Although AI is frequently cited as the reason, Hassabis believes the explanation is often far more straightforward. Companies see others cutting jobs and conclude that they should do the same.
The Real Cost of Modern Layoffs
The concerns raised by Hassabis extend beyond the immediate impact on employees who lose their jobs. Writing about his comments for Inc.com, Jessica Stillman argued that companies embracing layoffs as an AI strategy may be overlooking what they stand to lose.
While reducing headcount can produce short-term savings, Stillman questioned what opportunities businesses might miss once experienced employees leave.
She asked: 'What profit-making possibilities will you not pursue because of those job losses?' She also raised concerns about the effect on workers who remain after colleagues depart, asking: 'How will the departure of their colleagues affect the state of mind and productivity of those left behind?'
Those questions are becoming increasingly relevant as reports of employee burnout continue to rise. Middle managers, who have been among the groups most affected by recent layoffs, have reported that leaner teams supported by AI tools are often facing greater pressure and stress.
Some HR leaders are trying to approach AI adoption differently. At IBM, Chief Human Resources Officer Nickle LaMoreaux has positioned the HR department as a leader in integrating artificial intelligence while keeping people at the centre of the process.
LaMoreaux recently explained at The Wall Street Journal's CPO Council Summit that IBM has changed how it uses early-career HR talent. Employees who previously handled enquiries in call centres now work alongside the company's Ask HR chatbot. Their role includes helping to train the AI system while also gaining practical skills and contributing to employee engagement.
The approach allows IBM to use AI without reducing opportunities for entry-level workers. It also runs against a growing trend of scaling back junior hiring as organisations look for ways to reduce costs.
LaMoreaux urged HR leaders not to focus solely on the savings that AI may deliver. Instead, she encouraged them to think about the opportunities the technology could create. 'What growth can AI drive?' she asked. 'What can we do differently?'
Taken together, the comments from Hassabis and LaMoreaux challenge the increasingly common belief that AI and layoffs must go hand in hand. They argue that organisations should think more carefully about how technology can work alongside employees rather than assuming workforce reductions are the only path forward.
