Six in ten organisations claim artificial intelligence is responsible for workforce reductions. However, a closer look at survey data reveals a more complex reality. While AI adoption is reshaping roles, it is rarely the sole trigger for layoffs. Instead, companies are navigating multiple pressures at once.
Why companies are pointing to AI
According to the survey, many firms describe AI as a factor behind job cuts. Automation. Process redesign. Efficiency targets. AI has become an easy explanation. It signals modernisation. It also deflects attention from tougher business decisions.
In some cases, leaders frame layoffs as part of future-ready transformation rather than short-term correction.
What the survey data actually shows
Despite the narrative, most layoffs are linked to traditional causes. Slower revenue growth. Margin pressure. Project delays. The survey found that only a minority of roles were eliminated directly due to automation.
In most cases, jobs were cut as part of broader restructuring. AI often entered later. It replaced tasks. Not entire teams.
Cost control remains the main driver
Rising operating costs continue to weigh on organisations. Hiring during earlier growth cycles has also left many firms overstaffed. As demand normalises, companies are recalibrating headcount. AI is part of the story. But it is not the starting point.
Several respondents acknowledged that workforce reductions would have occurred even without AI tools.
How AI is changing work, not eliminating it
The survey highlights a shift in job design. Routine tasks are increasingly automated. At the same time, demand is rising for new skills like data literacy, system oversight, AI governance.
This transition creates disruption but it also creates new roles. Layoffs often reflect a skills mismatch rather than outright redundancy.
Why the AI-layoff narrative persists
AI offers a simple explanation in a complex environment. It resonates with investors. It aligns with innovation messaging. However, the data suggests caution. Overstating AI’s role risks misunderstanding workforce trends.
It may also distract from the need for reskilling and better transition planning.
What this means for employees and employers
For workers, AI is changing expectations. Adaptability matters more than job titles. For employers, clarity is critical. Transparent communication builds trust during restructuring.
The survey makes one point clear. AI is transforming work but it is not yet the primary cause of job losses.
