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AI Is Replacing Workers. Leaders Are Making It Worse | Opinion

David Grossman argues that leaders who mishandle AI-related layoffs risk losing the trust of the employees who remain.

In recent months, U.S. employers have cited artificial intelligence in over 116,000 announced job cuts, with tech companies alone announcing more than 155,000 layoffs. Meta eliminated around 8,000 positions while restructuring around AI, and Atlassian cut about 1,600 roles, acknowledging that AI changes workforce requirements. While some companies openly attribute AI as the reason for layoffs, others cite "business needs," even when AI investments sit in the same filings.

Employees understand the message: companies now believe machines can perform tasks previously done by humans. As companies replace workers with technology, many communicate the decision in ways that leave those affected feeling more disposable. Layoffs are an employee's worst nightmare, and AI has made them even more frequent and less human.

Atlassian CEO Mike Cannon-Brookes acknowledged that AI changes the number of roles needed in certain areas and took responsibility for the decision. However, other companies, like Meta and Oracle, provided no reason or named person for layoffs, using vague terms like "broader organizational change" and "current business needs." The distance between these approaches highlights the level of connection a leader is willing to maintain with the consequences of their decision.

Companies must communicate workforce reductions in a way that maintains trust with remaining employees, who must adopt new tools, redesign workflows, and adapt to AI-driven changes. Simply explaining the impact of AI on specific roles, putting a leader's name on the decision, and providing managers with information to answer questions can make a significant difference in how employees perceive the situation.

Ultimately, the decision to replace human labor with machines should not justify the removal of humanity from the process.

Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at newsweek.com →

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