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CEOs Use AI Threats to Justify Layoffs and Fuel Worker Anxiety

Executives frame AI use as a requirement to pressure employees into retraining because they anticipate substantial corporate headcount cuts.

Illustration: Sarah Grillo/Axios
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Overview

  • Amazon CEO Andy Jassy said generative AI will likely reduce the company’s corporate workforce, echoing JPMorgan executives who told investors they expect a 10 percent headcount reduction through automation.
  • Shopify CEO Tobi Lutke has declared AI adoption a baseline expectation, requiring managers to justify hiring humans over AI tools and signaling that roles may be automated.
  • A recent survey found 77 percent of workers say AI adds to their workload, with 39 percent spending time fixing errors in automated outputs and heightening job security concerns.
  • An IBM report warns that three in four AI initiatives fail to deliver promised returns, and experts caution that automating entry-level tasks could undermine the pipeline for future leaders.
  • Policymakers and industry analysts are calling for large-scale reskilling programs and stronger AI regulations to mitigate long-term workforce disruption and sustain talent development.