--- title: How Big Tech Lies About AI Layoffs | daily.dev description: Big Tech companies are using AI as a convenient excuse for layoffs that are actually driven by post-COVID overhiring and a desire to cut costs and boost stock... canonical: https://daily.dev/posts/how-big-tech-lies-about-ai-layoffs-kpixihs5y twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: How Big Tech Lies About AI Layoffs | daily.dev og:description: Big Tech companies are using AI as a convenient excuse for layoffs that are actually driven by post-COVID overhiring and a desire to cut costs and boost stock... og:url: https://daily.dev/posts/how-big-tech-lies-about-ai-layoffs-kpixihs5y og:image: https://api.daily.dev/og/posts/kpixIHs5y.png og:image:alt: How Big Tech Lies About AI Layoffs og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # How Big Tech Lies About AI Layoffs **[Matt Wolfe](https://daily.dev/sources/mreflow)** · 1 min read · 46 upvotes · 3 comments ## Summary Big Tech companies are using AI as a convenient excuse for layoffs that are actually driven by post-COVID overhiring and a desire to cut costs and boost stock prices. Rather than admitting they became bloated during 2020-2021, executives frame workforce reductions as AI-driven efficiency gains to impress shareholders. Notably, Nvidia CEO Jensen Huang and DeepMind CEO Demis Hassabis have both publicly called out this behavior, labeling the AI layoff excuse as lazy and irresponsible. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Community discussion Top comments from developers on daily.dev. **@rgodiyal** · 1 upvotes >  **@mavros\_lykos** · 1 upvotes > I think now they are spending more money on tokens than salleries of there developers **@lsaul** · 0 upvotes > Not surprising, when you look at the truth of the matter. A large majority of AI implementations fail to produce positive results. So why would they lay people off if AI was making them so much more productive? > > The excuse never made sense when you look at the results, not the hype. > > [https://fortune.com/2025/08/18/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo/](https://fortune.com/2025/08/18/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo/) --- Tags: [#ai](https://daily.dev/tags/ai), [#big-tech](https://daily.dev/tags/big-tech) [View this post on daily.dev](https://daily.dev/posts/how-big-tech-lies-about-ai-layoffs-kpixihs5y) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"How Big Tech Lies About AI Layoffs","url":"https://daily.dev/posts/how-big-tech-lies-about-ai-layoffs-kpixihs5y","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/how-big-tech-lies-about-ai-layoffs-kpixihs5y"},"datePublished":"2026-06-07T17:56:53.616Z","dateModified":"2026-06-07T17:57:08.401Z","description":"Big Tech companies are using AI as a convenient excuse for layoffs that are actually driven by post-COVID overhiring and a desire to cut costs and boost stock...","image":"https://i.ytimg.com/vi/08uMw4_BWOA/sddefault.jpg","thumbnailUrl":"https://i.ytimg.com/vi/08uMw4_BWOA/sddefault.jpg","isAccessibleForFree":true,"articleSection":"Matt Wolfe","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"Matt Wolfe","logo":"https://media.daily.dev/image/upload/s--JWE7fI4Q--/f_auto/v1716024560/logos/mreflow","url":"https://daily.dev/sources/mreflow"},"commentCount":3,"discussionUrl":"https://daily.dev/posts/how-big-tech-lies-about-ai-layoffs-kpixihs5y","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":46},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":3}],"keywords":"ai,big-tech","timeRequired":"PT1M","video":{"@type":"VideoObject","name":"How Big Tech Lies About AI Layoffs","description":"Big Tech companies are using AI as a convenient excuse for layoffs that are actually driven by post-COVID overhiring and a desire to cut costs and boost stock...","thumbnailUrl":"https://i.ytimg.com/vi/08uMw4_BWOA/sddefault.jpg","uploadDate":"2026-06-07T17:56:53.616Z","duration":"PT1M","url":"https://api.daily.dev/r/kpixIHs5y","embedUrl":"https://www.youtube.com/embed/08uMw4_BWOA"}} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"Matt Wolfe","item":"https://daily.dev/sources/mreflow"},{"@type":"ListItem","position":3,"name":"How Big Tech Lies About AI Layoffs"}]} {"@context":"https://schema.org","@type":"WebPage","@id":"https://daily.dev/posts/how-big-tech-lies-about-ai-layoffs-kpixihs5y","comment":[{"@type":"Comment","text":"","datePublished":"2026-06-11T04:37:57.150Z","url":"https://daily.dev/posts/kpixIHs5y#c-zA1AuRHhm","author":{"@type":"Person","name":"Rahul Godiyal","url":"https://daily.dev/rgodiyal","image":"https://lh3.googleusercontent.com/a/ACg8ocJUbWuKor0twjzGVmI3sXXFcW_cr9pu-M4_NN4eu3TOF-7Cf9o=s96-c"},"interactionStatistic":{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":1}},{"@type":"Comment","text":"I think now they are spending more money on tokens than salleries of there developers","datePublished":"2026-06-11T16:11:41.003Z","url":"https://daily.dev/posts/kpixIHs5y#c-oGCNfFPib","author":{"@type":"Person","name":"Charaka Hashan","url":"https://daily.dev/mavros_lykos","image":"https://media.daily.dev/image/upload/s--UhlNgzLT--/f_auto/v1786970273/avatars/avatar_rP15vFIdEPNpDSYMOi2AR?_a=BAMAMicg0"},"interactionStatistic":{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":1}},{"@type":"Comment","text":"Not surprising, when you look at the truth of the matter. A large majority of AI implementations fail to produce positive results. So why would they lay people off if AI was making them so much more productive?\nThe excuse never made sense when you look at the results, not the hype.\nhttps://fortune.com/2025/08/18/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo/","datePublished":"2026-06-11T14:11:44.121Z","url":"https://daily.dev/posts/kpixIHs5y#c-FP1q7T5xn","author":{"@type":"Person","name":"Lloyd S.","url":"https://daily.dev/lsaul","image":"https://media.daily.dev/image/upload/s--O0TOmw4y--/f_auto/v1715772965/public/noProfile"}}]} ```