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Here's why AI might just be a scapegoat for layoffs

CNBC · Just In
CNBC
CNBC
Just In

Between January and September 2025, there have been 946,426 job cuts announced, with roughly 300,000 from the government sector, according to Challenger, Gray & Christmas. But some economists don't buy that recent layoffs are caused by AI.

Breakdown
  • Over 946,000 job cuts were announced between January and September 2025, a 55% increase from the previous year.
  • Recent layoffs are often attributed to AI, but evidence suggests broader economic changes and restructuring are the main causes. 33s
  • Many companies cite AI as a reason for layoffs to appeal to investors, a practice known as 'AI-washing,' even when AI's role is minimal. 1m 54s
  • Studies show that implementing AI rarely leads to significant job cuts, and most layoffs are due to over-hiring or restructuring. 2m 54s
  • Research indicates that companies that delay layoffs tend to perform better financially, challenging the narrative that AI is causing mass job losses. 5m 6s
Artificial IntelligenceEconomy