AI gets the blame for 55,000 layoffs, but CFOs are the real culprits

AI gets the blame for 55,000 layoffs, but CFOs are the real culprits

December 26, 2025

### The AI Smokescreen: 55,000 Layoffs and the C-Suite Decision-Makers

The headlines are everywhere, painting a stark picture of the future of work: Artificial Intelligence is coming for our jobs. Recent reports have tallied the number of AI-related layoffs at a staggering 55,000 and climbing. It’s an easy narrative to accept. AI is the new, faceless entity, a relentless algorithm optimizing humanity out of the equation. But this story, while convenient, masks a much simpler truth. AI isn’t firing people; executives are. And the person signing off on the strategy is often the Chief Financial Officer.

For decades, the C-suite has pursued a singular, primary goal: maximizing shareholder value. This is the world of the CFO. Their job is to look at balance sheets, profit and loss statements, and operational costs, then find ways to make the numbers look better for the next quarterly report. Labor is almost always the largest expense on any company’s books. Therefore, reducing headcount is the quickest and most direct lever to pull to boost profitability.

Before AI became the buzzword of the day, these layoffs were justified through terms like “restructuring,” “synergies,” or “improving operational efficiency.” The reasoning was often met with public skepticism and employee resentment. It was a clear, albeit brutal, business decision.

Enter AI, the perfect corporate scapegoat.

Now, a CFO can present a cost-cutting plan not as a simple reduction of expenses, but as a forward-thinking, innovative leap into the future. Layoffs are no longer a difficult choice to appease shareholders; they are an inevitable consequence of technological progress. Framing the decision this way does several things:

1. **It deflects responsibility.** It’s much easier to say, “The capabilities of AI have made these roles redundant,” than it is to say, “We are firing 10% of our staff to increase our earnings per share.” The decision is reframed as a passive reaction to technology rather than an active choice driven by financial targets.
2. **It creates a perception of innovation.** Announcing that you are trimming your workforce to leverage AI can actually excite investors. It signals that the company is on the cutting edge and is serious about efficiency, which can lead to a temporary bump in stock price. The layoff announcement becomes a PR move.
3. **It discourages dissent.** Arguing against a layoff justified by “efficiency” is one thing. Arguing against one justified by the unstoppable march of “Artificial Intelligence” feels like trying to fight the future itself. It makes the decision seem bigger, more complex, and less personal.

The reality is that for most companies, AI is not yet a one-for-one replacement for human workers. Many of the current AI tools are powerful assistants, capable of automating specific *tasks*, not eliminating entire *roles* that require critical thinking, complex problem-solving, and human interaction.

The 55,000 jobs weren’t lost because a sentient algorithm walked into the office and took over a desk. They were lost because a human executive, likely with heavy influence from their CFO, saw an opportunity. They saw a new, highly palatable justification for an age-old business practice: cutting labor costs to increase profits.

AI is a tool. Like a hammer or a spreadsheet, its impact is determined by the person who wields it. To blame the technology is to ignore the human motivations and financial incentives that are truly driving these decisions. The conversation shouldn’t just be about the capabilities of AI, but about the priorities of the companies implementing it. Until we focus on the decision-makers in the boardroom, we will continue to mistake the tool for the hand that wields it.

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