Get all your news in one place.
100's of premium titles.
One app.
Start reading
International Business Times UK
International Business Times UK
Business
Welbert Bauyaban

The 'Dirty Secret' Behind AI Layoffs: Forrester Warns Tech Is Often Non-Existent

Forrester warns that companies are blaming AI for job cuts long before the technology is ready, risking a damaging credibility gap with workers and investors. (Credit: Science Simplified 4 All / Youtube Screenshot)

Executives are increasingly blaming artificial intelligence for sweeping layoffs even when the technology is barely in place, Forrester has warned, with analyst J.P. Gownder saying that in 'nine out of 10' such cases the AI capability behind those cuts simply does not exist.

The news came after a wave of job reductions at some of the world's biggest employers, many of which have been wrapped in the language of automation and digital reinvention. Nike has announced around 1,400 job cuts tied to restructuring and streamlining. Meta has reportedly moved to shed about 8,000 roles while spending heavily on AI infrastructure. Microsoft continues to reconfigure teams around AI priorities. On paper, this looks like a textbook technological revolution. Forrester's analysis suggests something more prosaic is often going on.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.