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    1. nhozemphtek on

      Because it makes stock go up due AI frenzy with shareholders, the other option is to admit current business and economic climate is really bad.

      Guess what they will choose.

    2. Because it lets them shove tens of millions of dollars into their own pockets.

    3. > Out are buzzwords like efficiency, over-hiring, and too many management layers.

      Yep. It’s the current convenient scape goat. Wall Street loves layoffs and love AI so this is a win-win.

    4. Because otherwise they’d have to admit they were wrong, and they can’t ever be wrong.

    5. thenewguyonreddit on

      Well if they admit that they had poor internal hiring controls and costs were rising faster than expected, they’d look like jackasses.

    6. iamnotpigeon on

      AI can generate fake videos and fire employees at the same time.
      How convenient.

    7. Let me guess, it turns a red flag into something positive for wall street minimizing the impact tot he stock price.

    8. I miss when they used to fear ruining peoples lives, fear it would drive down the stock, since naturally any ethical or empathic ramifications are non existent for them, it’s a language they don’t understand, shareholder value is the only language they speak

    9. „AI Budget“ is a very real thing companies are making room for. How fast it takes to bite them in the ass remains to be seen, but the money is definitely repurposed towards AI tools and tokens

    10. Because AI dose not need a paycheck, healthcare, 401K, and all the other things that „harm the share holders“ while raking in profit from selling a product or service (slop either way).

      Simple as.

      Edit for quotation marks.

    11. Cause it sounds modern and progressive, companies bidding who will layoff more people to look advanced

    12. Practical_Insect on

      Because it deflects from the fact that a human (CEO) gave that job to an AI.

      Much like the immigrant, AI has never stolen a job, it was given away by those in charge..

    13. This practice has the nickname „**AI washing**“, as in, „I suspect they are AI-washing their sales slump“.

      Investors may be able to sue them for lying in order to prop up stock price.

    14. merRedditor on

      It can be blamed on a million different things, but at the end of the day, if you look just beneath the surface, the motivation is always greed driving unsustainable short-term business decisions.

      We’re living in the rubble of a world destroyed to maximize shareholder value continuously, no matter what, quarter after quarter.

    15. DeLoresDelorean on

      Covering their ass. It’s best lying about being edgy and trendy than admitting their numbers suck and have to lay off people to maintain profits.

    16. kummer5peck on

      It distances them from their own accountability for their own mismanagement.

    17. kummer5peck on

      Let AI replace these incompetent “leaders” instead of the hard workers who actually keep their companies going.

    18. Apprehensive_Sea9524 on

      Well AI could replace CEOs too, since they are really not that good in what they do.

    19. Stocks always go up when companies fire people. Doesn’t take a genius to realize „we fired people *and* can have the job they used to do automated at multiples of efficiency“ is going to make them go up more.

    20. absentmindedjwc on

      Because people are idiots and believe them? My company has been „replacing employees with AI“ for the last couple years, for instance.. but we’ve suspiciously also been hiring like crazy in India, Brazil, and other low CoL areas.

      Oh.. and we only *just* got access to even halfway decent AI.. with fairly limited credit/token usage.

      tl;dr: its all bullshit for investors – they’re actually just offshoring jobs.

    21. Odd_Photograph_7591 on

      I don’t think they understand it,
      much less love it, but its a way to cut people, look good next quarter, blame AI and at the same time, look cutting edge for investors and the board

    22. jetstream100 on

      Or maybe the reasoning of layoffs due to AI is a facade they’re hiding behind.

    23. Ok_Bake_8256 on

      Ah, the classic „AI did it“ excuse. It’s the corporate version of „the dog ate my homework,“ but for firing thousands of people.

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