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White House advisor Michael Kratsios says that some companies are blaming AI for layoffs even when it has nothing to do with job roles cut, as
TOI Tech Desk / TIMESOFINDIA.COM / Aug 09, 2026, 15:32 IST
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White House Science and Technology Advisor Michael Kratsios believes technology companies that are blaming layoffs on artififical intelligence (AI) may not be what it looks like. He said that some companies that are attributing layoffs to AI even when the workforce reductions were likely planned regardless. Kratsios argued that the explanation “plays better in the press.” The remarks suggest that AI is sometimes used as a public justification for job cuts rather than as the direct cause of them.Speaking on the Moonshots with Peter Diamandis podcast, Kratsios said, “I think like a lot of folks these days, like when they’re doing a layoff that they would have done anyway, just like to assign it or blame it to AI because it plays better in the press.”Podcast host Peter Diamandis responded that companies may also benefit because investors often reward higher productivity with fewer employees. “And their stock price goes up if they are, you know, producing more revenue with fewer people,” Diamandis said. “Precisely. Yeah,” Kratsios replied.
White House advisor Michael Kratsios remains optimistic about AI’s long-term impact
While questioning how companies describe layoffs, Kratsios said he remains positive about AI’s long-term effect on employment. He argued that although the technology will change existing roles, it is also expected to create new opportunities.”I believe in the long term, I’m very optimistic about the impact that AI’s going to have on jobs,” he said.
Other business leaders have made similar observations
Kratsios’ comments echo remarks from OpenAI CEO Sam Altman, who recently said public scepticism about AI is increasing, with the technology often blamed for rising energy use and job losses even when it is not directly responsible.Apollo Global Management Chief Economist Torsten Slok has also argued that there is “zero evidence” showing AI has caused broad employment losses. Instead, he pointed to continued hiring across AI implementation, semiconductor manufacturing, data centres and energy infrastructure.Slok added that AI could expand economic activity through the Jevons paradox, where efficiency gains increase overall demand, creating new jobs and business opportunities.Amazon founder Jeff Bezos has likewise rejected predictions of widespread AI-driven unemployment, saying AI is expected to improve productivity, help workers perform more efficiently and could eventually contribute to labour shortages as lower costs drive economic growth.
Microsoft and Meta continue AI workforce shifts
Several technology companies have continued restructuring their workforces while expanding AI investments. Microsoft eliminated about 4,800 roles, saying the reductions reflected broader business changes rather than AI replacing employees. The company also said it would continue investing in AI training and related initiatives.Meta also reorganised its workforce around AI, moving roughly 7,000 employees into AI-focused teams while cutting about 8,000 positions. The company said the changes were intended to build more “AI-native” teams, accelerate AI development, and improve productivity.Get the latest technology news and updates. Download the TOI App.
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