Tens of thousands of layoffs are being blamed on AI. What are companies actually getting?

Rob Wile, and Jarod Perlo. “Tens of Thousands of Layoffs Are Being Blamed on AI. What Are Companies Actually Getting?” NBCNews.Com, NBCUniversal News Group, 31 Oct. 2025, www.nbcnews.com/business/business-news/tens-thousands-layoffs-are-blamed-ai-are-companies-actually-getting-rcna240221.

This article examines how companies are laying off workers in response to AI-driven productivity. Having invested heavily in AI, these companies hope that increased output will allow them to maintain a smaller, more efficient workforce. Yet, there is still insufficient evidence to show that AI will actually reduce costs. This has led many to speculate that companies like Amazon may have other, undisclosed reasons for these layoffs, which could be contributing to declining profits. Perhaps AI will eventually help address some of these performance challenges and save companies money, but that remains to be seen.

This article suggests that the supposed benefits of AI may not justify the risks for already struggling corporations. Productivity gains are far from guaranteed, yet companies are betting on AI’s promises without solid evidence. This risky approach puts thousands of jobs in jeopardy prematurely. A smaller, more cautious rollout might be wiser before taking drastic measures that may not pay off. Moreover, the hype around AI is increasingly being used as a convenient scapegoat for other performance issues, allowing corporations to point fingers at technology rather than confronting their own poor business practices.