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U.S. Companies Blame AI for Layoffs, Critics Call It a Convenient Excuse

Across the U.S., large companies are announcing layoffs and citing AI as the reason. From tech firms to airlines, employees feel anxious about the future. However, experts warn that AI may be a convenient excuse rather than the true cause.

Accenture recently revealed a restructuring plan requiring staff to reskill in AI or face early exits. Similarly, Lufthansa plans to cut 4,000 positions as it integrates AI to improve efficiency. Salesforce also eliminated 4,000 customer support jobs, claiming AI can handle half of its workload. Meanwhile, fintech firm Klarna reduced staff by 40% while adopting AI tools. Language-learning platform Duolingo plans to phase out contractors, replacing them with AI systems over time.

Fabian Stephany, assistant professor at Oxford Internet Institute, argues that companies may use AI as a scapegoat. He explained that layoffs often reflect broader business decisions rather than real efficiency gains. Companies position themselves as AI innovators to appear competitive while concealing true motives for workforce reductions.

Stephany noted that overhiring during the pandemic also contributes to the recent layoffs. Duolingo and Klarna exemplify firms adjusting staff levels to match long-term needs. He added that AI often becomes a convenient justification for decisions companies already planned to make.

Jasmine Escalera, a careers expert, said claims about AI are fueling employee fears. Transparency about AI adoption remains low, and companies openly linking layoffs to AI increase anxiety. She urged U.S. firms to set responsible business practices and avoid misleading employees.

Data from Yale University’s Budget Lab shows that AI has not caused widespread job losses in the U.S. labor market. Only 1% of service firms report AI as a primary reason for layoffs. By contrast, many companies use AI to retrain staff or increase hiring. The New York Federal Reserve confirmed that AI adoption rose across services and manufacturing, but it rarely led to job cuts.

Stephany emphasized that historical fears about technology replacing workers often exaggerate the impact. He noted that new technologies create new roles and opportunities. The internet, for example, generated entirely new careers, including app developers and social media influencers.

Despite rising headlines, AI job cuts in U.S. companies appear limited. Experts agree that structural business decisions, not AI alone, drive most workforce reductions. Meanwhile, companies continue to integrate AI to improve efficiency, productivity, and competitiveness.

For more business updates, visit DC Brief.

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