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US Edition - Today's top story: Layoffs tied to AI hurt worker productivity – and the reason may surprise managers View in browser

12 August 2026

US Edition

The Conversation
 

Top headlines

Lead story

Executives love to talk up the benefits of artificial intelligence. So why do many also admit that they have yet to see a major boost in AI-driven productivity among their workers?

Mark Ma, a professor of business administration at the University of Pittsburgh, noticed this disconnect in his research. He and several colleagues sought answers by analyzing job satisfaction reviews, corporate financial reports and announcements of AI investments, as well as layoffs. It turns out that when proclamations of fresh AI investment go up, so too do notices of job cuts attributed to more use of AI.

This connection between AI adoption and layoffs is why so many employees are souring on AI, Ma believes. They’re told they must embrace a technology that can also replace them. As a result, their morale drops – and they become less productive.

“Using AI to justify cutting jobs is … a strategic miscalculation that cuts against the benefits of AI,” he writes. “Companies find themselves left with a demoralized workforce and an underwhelming return on AI investment.”

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Helen Fessenden

Senior Economy and Business Editor

 
When companies announce layoffs as a result of AI, they overlook the damaging effect on workers’ morale. Justin Sullivan/Getty Images

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