Tech Giants' CEOs Lay Off Workers Over AI

Shocking Numbers: Who Has Laid Off Workers in 2026?

Let's look at the numbers from major tech companies that announced layoffs since the start of 2026, many of which directly cited AI as the reason:

Company	Employees Laid Off	CEO Statement / Reason
Block (Jack Dorsey)	40% of workforce	"AI can do these jobs now. We don't need as many people."
Amazon	16,000 employees (Jan 2026)	Cited restructuring to invest in AI and automation
Salesforce	Thousands	CEO Marc Benioff: "AI agents mean we don't need to hire additional support staff"
JP Morgan	White-collar job cuts	CEO Jamie Dimon: "AI will replace a large number of white-collar jobs"
Ford	Cuts across offices and factories	CEO Jim Farley: "Many jobs will be replaced by AI within 3 years"

A Resume Builder survey found that 60% of Hiring Managers in the U.S. plan to lay off employees in 2026, citing AI/Automation as the reason. It seems AI is becoming a "legally acceptable excuse" for workforce reductions.

HBR Analysis: "AI's Potential" vs "AI's Actual Performance"

An analysis from Harvard Business Review (HBR) highlights a critical point that's been overlooked:

"Companies are laying off workers because of AI's 'potential,' not because of AI's 'performance.'" (Companies are laying off because of AI's potential, not its performance)

- Harvard Business Review, 2026

This is the heart of the problem: many CEOs decided to lay off workers before AI had proven itself capable of actually replacing humans. They made decisions based on "what AI might do in the future," not "what AI can actually do today."

Imagine this: if an organization lays off employees with 10 years of experience, only to find that AI still can't perform those tasks well enough — who takes responsibility? This is the risk HBR warned about, which aligns with the problem of organizational knowledge loss that many organizations are currently facing.

The "AI-Washing" Phenomenon: When AI Becomes a Ready-Made Excuse

Fortune magazine uses the terms "AI-washing" and "forever layoffs" to describe the phenomenon where companies use AI as an excuse to lay off workers, even though the real reasons may be entirely different:

• Cut costs to boost quarterly profits — pressure from investors and Wall Street
• Pre-planned restructuring — AI sounds more modern than "cutting expenses"
• Project an "AI-first" image — attract investors who favor the AI theme
• Reduce resistance from remaining employees — "It's not that you're bad, AI can do it now" sounds better than "the company is losing money"

This 4.5% figure contradicts the media narrative suggesting that AI is "eating jobs" everywhere. The reality is that AI is not yet the primary cause of layoffs — but it is being used as a "cover" for business decisions that have other underlying reasons.

The Fed Reserve's Voice: AI Enhances Productivity, Not Eliminates Jobs

Christopher Waller, Governor of the U.S. Federal Reserve, offered a notable perspective:

"AI is more likely to enhance productivity than to eliminate jobs — just like every new technology throughout history."

- Christopher Waller, Federal Reserve Governor

This perspective aligns with the history of technology: when ATMs arrived, bank tellers didn't disappear — they shifted from counting cash to financial advising. When Excel came along, accountants didn't lose their jobs — they gained the ability to perform deeper analysis. The real question isn't "Will AI replace humans?" but rather "How can organizations adapt so people work alongside AI?"

Impact on Thai Organizations: What You Need to Know

While the layoff trend is most prevalent in the U.S., its impact is already reaching Thailand, particularly among:

• Multinational companies in Thailand — Thai branch offices are affected by parent company downsizing policies
• BPO/Outsourcing businesses — data entry, customer support, and back-office work previously outsourced to Thailand is starting to be replaced by AI
• Accounting and Finance departments — reconciliation, reporting, and repetitive compliance tasks are being automated
• HR departments — resume screening, scheduling, and administrative tasks are being challenged

The important thing is that Thai organizations should not "panic" into following the layoff trend. Instead, they should manage risks systematically by analyzing which jobs AI can actually do today — not jobs AI "might" do in the future.

How to Prepare: Upskilling, ERP, and Process Automation

Instead of laying off workers, smarter organizations choose to prepare their people for the AI era with the following approaches:

1. Upskilling Your Existing Workforce

Training employees to use AI as a tool is better than firing them and hiring new staff, because existing employees have domain knowledge that AI lacks — customer understanding, internal processes, and institutional memory built over years. If these people are let go, organizations lose irreplaceable knowledge, as we analyzed in our article What to Do When AI Outperforms Humans.

2. Use ERP as Your Foundation

Before thinking about AI, you need a solid data infrastructure first. A good HR system helps manage workforce, accounting systems help analyze costs, and ERP connects everything together. Having structured data is the foundation that makes AI actually work — not just a buzzword.

3. Process Automation Does Not Equal Job Elimination

A common misconception is: "automate process = fire people." In reality, good automation should:

• Reduce repetitive tasks — give people time for higher-value work
• Reduce errors — minimize rework caused by human mistakes
• Increase throughput — accomplish more with the same team, not a smaller team
• Elevate work — shift from data entry to data analysis

Most importantly, before bringing AI or automation into an organization, you must carefully consider how it will impact people, as we discussed in our article Before Replacing Humans with AI: Risks Every Executive Must Know.

Conclusion: Don't Fall for "AI-Washing" — Make Decisions Based on Data, Not Trends

AI-cited layoffs are a phenomenon that requires seeing through the surface:

• Real numbers: Only 4.5% of layoffs directly cite AI
• HBR makes it clear: Companies lay off because of AI's "potential," not its "actual performance"
• Fed Reserve warns: AI will enhance productivity, not eliminate jobs
• AI-Washing: Many companies use AI as a "cover" for pre-planned cost-cutting

For Thai business executives, here is the recommendation: Don't lay off people because of trends — invest in people because of data. Build a robust ERP system, train employees to use AI as a tool, and manage change with a plan. Because ultimately, the strongest organization isn't the one with the fewest people — it's the one where people work most effectively.

References

• Harvard Business Review — Companies Are Laying Off Workers Because of AI's Potential, Not Its Performance
• Fortune — AI-Washing and Forever Layoffs: How Companies Use AI as an Excuse
• Reuters — Amazon Cuts 16,000 Jobs in January 2026
• CNBC — Block (Jack Dorsey) Lays Off 40% of Workforce
• Federal Reserve — Governor Waller on AI and the Labor Market
• Resume Builder — 60% of Hiring Managers Plan Layoffs in 2026
• Challenger, Gray & Christmas — 2025 Layoff Report: AI Cited in Only 4.5% of Cuts