Artificial intelligence is becoming a major focus for companies across the world. On one hand many businesses and companies say they are investing heavily in AI, on the other hand they have also announced layoffs. This has created a belief among employees that AI is eventually going to replace human jobs, as and when companies increase thier spending on AI infrastructure. However, Will Ahmed, CEO of Whoop, believes the situation may not be as simple as it seems.
Will Ahmed recently said that some companies are using AI as a convenient excuse to explain layoffs, even when the real reasons could be weak business performance or changes in strategy.
In a post on ‘X’ he wrote, “There is a lot of companies that are doing layoffs right now and blaming it on AI,” Ahmed said. “But they are actually doing layoffs because the businesses aren’t performing particularly well. And it’s a convenient excuse.”
AI being used as a reason for layoffs
In the past year, many technology companies have cut jobs while talking about their growing focus and spending on artificial intelligence. Because of this, many people believe AI is directly taking away jobs.
However, Ahmed argues that companies sometimes blame AI for layoffs even when other factors are responsible. According to him, businesses may be reducing staff because their growth has slowed down or because they need to restructure their operations. Saying that AI is the reason can make these decisions appear more acceptable.
His comments come at a time when employees across industries are worried that AI tools could eventually replace them.
Layoffs across Silicon Valley
Many well-known companies have announced layoffs recently. Payments company Block Inc., led by Jack Dorsey, reportedly cut more than 4,000 jobs as it works on integrating artificial intelligence into its systems.
Other big tech companies have also reduced their workforce. Amazon has cut thousands of jobs in recent years, while Meta Platforms reduced staff in its Reality Labs division. Platforms such as Pinterest and Autodesk have also announced layoffs while making changes related to AI.
Layoffs are not limited to technology companies. Financial services firm Morgan Stanley has also reduced its workforce by around three percent.
AI and human workers can work together
Will Ahmed says that investing in AI does not mean companies must reduce their workforce. His company, Whoop, builds wearable fitness devices that track data such as sleep, recovery and physical strain.
The company currently employs around 800 people and has expanded its team in recent years. According to Ahmed, building advanced technology still requires skilled employees.
He believes the future of work will involve humans and AI working together, rather than AI completely replacing people. For companies, the real challenge will be learning how to use both effectively.