Tech giants are suddenly invoking artificial intelligence (AI) to explain their mass job cuts. From social media moguls like Meta's Mark Zuckerberg, who sees 2026 as AI’s transformative year, to financial tech leaders like Jack Dorsey, who is downsizing his firm by half, the excuse seems to be everywhere.

But it’s not just about efficiency or pleasing shareholders. As these companies pour $650bn into AI in the coming year, they’re also looking for ways to cut costs, and layoffs are one of the most significant expenditures on their chopping block. Tech investor Terrence Rohan suggests that pointing to AI makes a better blog post than citing financial pressures.

For Anne Hoecker at Bain, it’s not just about efficiency; AI tools are genuinely making teams more productive. She notes that some companies she backs have code that is 25% to 75% AI-generated, posing a real threat to jobs in software development and engineering. The narrative seems to be shifting from cost-cutting to showcasing advanced technological capabilities.

Amazon's CFO has laid out this dual strategy explicitly, stating that the firm will continue to offset its massive AI investments by making cost reductions elsewhere. This reflects a broader trend where Big Tech firms are looking for any opportunity to trim costs without fully acknowledging the scale of their AI ambitions.

In essence, tech CEOs may be using AI as both an excuse and a justification. It’s a clever PR move that masks financial realities while also signalling a commitment to innovation. But as these companies continue to expand their AI investments, the impact on jobs and industries could be profound.