Companies are blaming AI for layoffs — but the real reason is fear of making the wrong move, a workplace guru says

As layoffs continue to sweep through various sectors, including technology and professional services, many companies are attributing these job cuts to the rise of generative AI. However, a leading organizational expert suggests that the true motivation stems from a pervasive fear of making incorrect decisions in an uncertain environment. Thomas Roulet, a professor at the University of Cambridge specializing in organizational sociology and leadership, shared his insights in a recent LinkedIn post. He emphasized that while companies often cite generative AI as the scapegoat for workforce reductions, the underlying issue is a reluctance to commit to human resources decisions amidst a climate of unpredictability. Roulet noted, "We hear a lot about firms laying off workers while blaming GenAI, but the broader perspective is that firms are reluctant to make any HR decisions with such a high level of uncertainty." He warned that this hesitation could have far-reaching consequences for employee wealth accumulation and career advancement. Roulet pointed out that the instability in job security could hinder workers' long-term career mobility, which is crucial for developing human capital. His comments arrive at a time when companies across multiple sectors are presenting varying justifications for their layoffs. For instance, AI-focused organizations are framing workforce reductions as strategic realignments to better integrate AI capabilities. Notably, xAI, founded by Elon Musk, has reduced its generalist data-annotation jobs by a third while simultaneously expanding roles for specialized AI tutors. Similarly, Snorkel AI has cut 13% of its workforce while prioritizing AI positions. In contrast, traditional tech giants like Microsoft and Salesforce are also reducing staff but are simultaneously hiring for roles focused on AI development. Meta has mentioned its efforts to enhance employee performance standards, leading to the departure of what it labels as 'low performers.' Meanwhile, some professional services firms, like PwC, are citing workforce dynamics unrelated to technology, with recent layoffs attributed to historically low attrition rates. As the landscape of employment continues to evolve, the reasons behind layoffs appear to be multifaceted, with fear of missteps in decision-making taking center stage.