Tech companies are blaming AI for the massive layoffs. What’s really going on?

In recent months, a wave of technology companies have announced significant staff cuts, attributing them to efficiency improvements through artificial intelligence (AI).

Companies like Atlassian, Block and Amazon have announced they would lay off thousands of employees due to increasing reliance on AI.

The narrative of these companies is consistent: AI makes human labor replaceable and responsible management requires adjustments.

However, the evidence tells a more nuanced story.

The automation story is partly true

Real transformations are visible in certain areas of the labor market, although the extent of these transformations is often overstated. Research from Anthropic published earlier this month shows that while many work tasks can be automated, the vast majority are still performed primarily by humans rather than AI tools.

In addition, some professions are more affected by displacement than others: computer programmers are at the top…