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business5h ago
CEOs blame AI for layoffs, but an MIT professor says it fits a long-running pattern to find a cover story. 'They've been saying that for 20 years' | Fortune
- Firms like Wix, Snap and Block cite AI as a reason for layoffs, signaling a broader trend.
- MIT Sloan professor Osterman says the AI framing is a long-running pattern, not a new concept.
- Osterman calls AI a ‘cover story’ to justify layoffs and cut labor costs.
- The term ‘AI washing’ describes using technology as a spin to portray innovation.
- Cisco’s layoffs reportedly coincided with a stock rally of 13% afterward.
- The pattern extends to ongoing growth in contingent workers within the U.S. workforce.
- Disposable workers may face lower wages and less job satisfaction, Osterman notes.
- The article links AI-related layoffs to a broader need for economic adaptation.
- Fortune emphasizes the long-term debate over AI’s impact on the labor market and employment.
- The analysis cites parallels with past layoffs and signals a recurring narrative.
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