In recent weeks, the tech industry has been rocked by yet another wave of layoffs. Major players like Intel and Cisco Systems are slashing significant portions of their workforce—15% and 7%, respectively. Over 40 other companies have followed suit, raising concerns about the stability of employment in an industry once hailed for its resilience and growth. But there’s a troubling narrative emerging alongside these layoffs: the rise of artificial intelligence.
For many, AI has become the convenient scapegoat, blamed for job losses and the looming automation of entire industries. But this explanation lets corporations off the hook too easily. AI isn’t taking your job—your company is choosing to give it away.
The Convenient Excuse
Corporations have long looked for ways to cut costs, and automation has always been an attractive option. The rapid advancement of AI technology provides a perfect excuse to justify layoffs while simultaneously promising shareholders greater efficiency and profitability. But at its core, this isn’t about innovation—it’s about corporations prioritizing profit margins over people.
“We’ve seen major tech companies such as Intel—who have laid off 15% of their employees—and Cisco Systems, who followed with a 7% cut. Over 40 other companies have followed suit. Some companies are even looking to automate certain positions once employees have been let go,” says George Kailas, CEO at Prospero.ai.
The ROI Dilemma
AI investment has become a badge of honor for corporations, a sign they’re future-proofing their business. But as George notes, this heavy spending comes with strings attached. “Public companies have spent so much on AI, they will increasingly have to show their shareholders an ROI on that spend. Automating jobs such as administration or human resource-based positions would allow companies to pocket salaries while their technology does the work,” Kailas explains.
This isn’t just a problem for the tech sector—it’s a trend spreading across industries. From retail to manufacturing, companies are investing in AI to streamline operations, often at the expense of their workforce. The result? Real people lose their livelihoods while corporations bask in short-term financial gains.
The Ethical Tradeoff
The question of whether companies should prioritize profit or employees is as old as capitalism itself. But as AI becomes more pervasive, the ethical stakes are higher than ever. “While that sounds exciting to companies hoping to save a couple of dollars, it isn’t a great deal for the employees who are now without work. It also poses the age-old ethical dilemma: Should corporations prioritize their profit or their employees? I guess some companies have made their decision,” Kailas adds.
This tradeoff isn’t just about numbers on a balance sheet—it’s about the long-term consequences of dehumanizing workforces. Job losses on this scale can erode community stability, widen income inequality, and foster mistrust in institutions.
Flipping the Narrative
The dominant narrative—AI as the villain—is dangerously simplistic. It lets corporations shift responsibility and avoid accountability for their decisions. AI isn’t inherently harmful; in fact, it holds tremendous potential to enhance productivity, create new opportunities, and even generate entirely new industries.
The problem isn’t the technology—it’s how it’s being wielded. Instead of using AI to complement human workforces, companies are using it as a tool for ruthless cost-cutting. Imagine the possibilities if corporations invested in upskilling their employees to work alongside AI, rather than replacing them outright. This approach could lead to a more equitable and sustainable integration of technology into the workforce.
What’s at Stake
As we grapple with the rapid integration of AI, it’s crucial to question not just what we’re gaining but what we’re losing. The allure of immediate ROI should not blind companies to the long-term value of a loyal, skilled workforce. Similarly, employees need to push back against the narrative that automation is inevitable and advocate for systems that prioritize collaboration over replacement.
AI has the potential to be transformative, but whether that transformation is positive or negative depends entirely on the decisions companies make. Are they willing to balance innovation with responsibility? Or will they continue to prioritize profit at the expense of the people who make their success possible?
For now, the writing on the wall is clear. If the current trajectory continues, it’s not AI taking your job—it’s your employer. The question is, what are we going to do about it?