AI JOBS
CEOs are changing the AI layoff script
CEOs used to talk openly about how many jobs AI could replace.
Now, with fears about work and the economy rising, companies are choosing their words much more carefully.
The tension is simple: investors want proof AI is saving money, while employees do not want to hear that those savings come from cutting staff.
That shift is already visible. Klarna previously said its AI assistant was doing the work of 700 employees.
Salesforce linked AI to a smaller support team, while Coinbase cut around 700 jobs as it moved towards smaller, AI-focused teams.
Public concern is also growing. Recent US surveys found most adults expect AI to reduce economic opportunities, while younger people are especially worried about future job losses.
AI was also the most commonly cited reason for US job cuts in July for the fifth month in a row. Nearly 113,000 announced cuts this year have been linked to AI.
Now, companies are trying to separate AI changing work from AI replacing workers.
For companies, the key lessons are:
Explain AI changes early, before layoffs happen.
Do not present job cuts as an AI success story.
Keep the message consistent across staff updates, press statements and investor calls.
Corporate America finds the mute button
Etsy, Patreon and Microsoft have all recently said job cuts were not directly caused by AI, while still acknowledging that the technology is changing roles and skills.
AI has not changed the basics of communicating layoffs, but it has made the wording much more sensitive.
CEOs doing CEO things - MV