Companies Are Blaming AI for Layoffs That Have Nothing to Do With AI

Companies are increasingly citing artificial intelligence as the proximate cause for sweeping layoffs even when internal growth, poor management, or investor pressure appear to be the real drivers. This rhetorical move can reassure markets (share prices rose for Block) while deflecting scrutiny from past hiring decisions and current governance choices. — If AI becomes a routine pretext for downsizing, policymakers, workers, and investors will need new standards for transparency about automation claims, severance protections, and disclosure of the real motives behind cuts.