One question is haunting laid-off Big Tech workers: Did AI just cost me my job?

• Some laid-off workers are questioning whether AI played a role in their job losses.
• Hype around AI — and major corporate investments — has fueled concerns about long-term job security.
• While some have concluded AI isn't taking their jobs just yet, others are actively building AI skills.
  

When Kent Ha was laid off from his digital marketing role at Intel last July, he'd been mentally preparing for the possibility that his job could be cut — in part due to AI.

Prior layoff rounds had left him concerned about his job security. Plus, earlier that year, Intel announced plans to outsource much of his division's work to Accenture, which it said would use AI to enhance its marketing efforts.

"That made it seem even more likely that our group would be hit," said Ha, who's in his 30s and based in Portland, Oregon.

Over the past year, I've spoken with dozens of white-collar workers who had recently been laid off — and were left wondering why. Those who weren't aware of any personal performance concerns pointed to a variety of possible explanations, including cost-cutting, the Great Flattening, and pandemic-era overhiring. And one question came up over and over: Is AI to blame?

As companies pour money into AI, it remains unclear if the technology will replace jobs — or create new ones. While some have signaled that replacing human employees is the goal, others haven't been as clear. Instead, they've cut jobs while simultaneously funding significant AI investments, leaving workers to connect the dots.

US employers cited AI as responsible for nearly 55,000 planned layoffs last year, per Challenger — up from about 17,000 combined in the two years prior. As pressure mounts to show returns on AI investments, companies may respond by tightening performance standards — and ultimately, shedding the workers who can't keep up.

Still, most companies stop short of pointing the finger at AI. A Microsoft spokesperson previously told Business Insider the company was focused on reducing management layers and streamlining processes. Amazon also cited efficiency and culture as a reason for cuts.

Regarding the layoffs that affected Ha, an Intel spokesperson said the company is "taking steps to become a leaner, faster and more efficient company."

The workers puzzling out AI's role in their layoffs aren't just trying to process the news — they want to better assess what they're up against in today's job market. To thrive in an AI-driven future, they know they may need to learn new skills and explore new roles. They just want to know if the future they've been fearing has already arrived.

AI's impact is top of mind for workers navigating layoffs

When Joe Friend learned in May that he, along with thousands of others at Microsoft, had lost their jobs, he "wasn't entirely surprised by the layoffs," he said. "I was surprised to get caught up in them."

Friend, who's in his 60s and lives in Washington state, was a director of product management overseeing a team of nine. He said he saw speculation online that the layoffs were tied to productivity gains from Microsoft's AI investments — that AI had effectively "eaten" people's jobs. However, he said he hadn't seen much evidence that AI was significantly boosting productivity — and suspects the cuts were more about freeing up money for those investments.

"I think these are cuts to offset the huge expenditures that are being made into the structure for AI," he said. "So in that way, AI has eaten your job, but not in terms of AI creating productivity gains."

Ian Carter, another laid-off Microsoft worker, also pointed to the company's large investments in AI, as well as what he saw as overhiring during the pandemic. While pursuing roles similar to his former technical program manager position, he also began developing his AI skills — noting that job postings increasingly signaled demand for that expertise.

Which jobs will be most vulnerable to AI takeover has been a topic of speculation for years. James Hwang, who lost his Amazon job in October, said he knew that his role — providing IT support for Amazon employees — could be at some risk of automation. Plus, last June, Amazon CEO Andy Jassy said he expected AI-driven efficiency gains would eventually lead to a smaller workforce.

Still, while Hwang's team had started using AI to help troubleshoot issues, he didn't think the tech was there yet. He's currently applying to similar IT support roles and hasn't shifted his job search strategy in response to AI concerns.

"Amazon is not at that stage yet where AI can do our job," said Hwang, who's in his 20s and lives in Michigan. "For us, AI is a tool, because there needs to be a human touch for support."

Friend and Hwang are among several laid-off workers who told Business Insider they believe AI's role in their cuts had less to do with automating jobs and more to do with freeing up cash, in part to fund AI investments. But in the end, the financial impact is the same for those who lost their jobs. Going forward, Friend said he plans to be highly selective about his next role, as he believes job security is becoming harder to find in the tech industry.

Whether AI took their job or the budget, it may be time for a career reinvention

Laid-off workers who wonder whether AI played a role in their job loss may never get a clear answer.

A company's decision to conduct layoffs is often shaped by a mix of factors — from financial pressures to shifting priorities. And even when leadership offers an explanation for the cuts, it may reflect only part of the story — shaped as much by messaging strategy as by internal reasoning.

Ninety percent of analysts surveyed recently by Goldman Sachs said AI hadn't yet affected employment levels at the companies they cover — but 60% expected it to drive lower employment over the next five years.

Amid this uncertainty, some laid-off workers have decided to build AI skills to prepare for the evolving job market.

In his prior role in product at a software development company, Lee Givens Jr. saw colleagues leave for firms eager to shell out big salaries for AI talent. So when was laid off in 2023, he began thinking about how to better position himself in a tech industry that had clearly shifted toward AI.

Givens Jr. decided to study AI frameworks relevant to his field, hoping it would make him a more attractive candidate. He said he believes that investment paid off, helping him later land a staff product manager role at a Toyota subsidiary, where he's now putting his AI knowledge to work.

"When there's a major technological shift — like the rise of the internet or AI — you have to reinvent yourself," he said.