Companies Are Laying Off Workers Because of AI's Potential--Not Its Performance.

The article examines how companies are laying off workers primarily due to the anticipated potential of generative artificial intelligence (AI), rather than its current performance or proven economic value. A survey of 1,006 global executives conducted in late 2025 found that many organizations have reduced headcount or slowed hiring in expectation of AI-driven automation, despite limited evidence that AI has yet delivered substantial productivity gains or job displacement. The article highlights challenges in measuring AI's impact on jobs, noting that AI typically automates specific tasks rather than entire roles, and cautions against premature large-scale layoffs justified by AI. It recommends incremental workforce adjustments, controlled experiments to assess AI's effects, and involving employees in redesigning workflows to better integrate AI, emphasizing transparency about AI's role in augmenting rather than simply replacing human work.