CEOs Rebrand AI Layoffs as 'Workforce Transformation'

The way CEOs discuss artificial intelligence (AI) and layoffs has undergone a significant shift in recent times. Gone are the days of touting AI's ability to replace workers; instead, leaders are now being more careful with their messaging.

According to Axios, this change is largely due to growing economic worries and anxiety around AI and employment. A CBS News and YouGov poll found that 61% of adults in the U.S. believe AI will ultimately mean fewer economic opportunities for most people, while a Pew survey revealed that 73% of Americans under 30 expect it to lead to fewer jobs over the next two decades.

Companies like Klarna, Salesforce, and Coinbase have previously highlighted AI's efficiency gains by citing the number of workers it could replace. However, leaders are now being more nuanced in their discussions. For instance, Etsy CEO Kruti Patel Goyal said this month's 220 job cuts 'weren't driven by AI,' while acknowledging that the technology is changing the skills and capabilities needed.

Gartner senior director analyst Catherine Donnelly notes that employees process and think about AI-related news at work from multiple external sources. Leaders must now carefully word their statements to distinguish between 'AI is reshaping how we work' and 'AI is replacing workers.'