Michael Kratsios Says Some Companies Blame AI for Layoffs Because 'It Plays Better in the Press'

Snigdha Gairola

Sat, August 8, 2026 at 12:30 AM GMT+3 5 min read

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White House Science and Technology Advisor Michael Kratsios said some companies are blaming artificial intelligence (AI) for layoffs they likely would have carried out anyway, arguing the explanation "plays better in the press."

Kratsios Questions AI Layoff Narrative

On Tuesday, Kratsios said during an appearance on the "Moonshots with Peter Diamandis" podcast that some businesses are attributing layoffs that they likely would have made regardless to AI because the narrative is more appealing to investors and the public.

"I think like a lot of folks these days like when they're doing a layoff that they would have done anyway, just like to assign it or blame it to AI because it plays better in the press," Kratsios said.

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Podcast host Peter Diamandis suggested companies may benefit from framing job cuts as AI-driven efficiency improvements because markets often reward higher productivity with fewer workers.

"And their stock price goes up if they are, you know, producing more revenue with fewer people," Diamandis said.

"Precisely. Yeah," Kratsios responded.

He said he remains optimistic about AI's long-term impact on employment, arguing the technology could create new opportunities even as it changes existing roles.

"I believe in the long term, I'm very optimistic about the impact that AI's going to have on jobs," he said.

AI Won't Replace Jobs, Leaders Say

Earlier, OpenAI CEO Sam Altman warned that public skepticism around AI is rising, with many blaming the technology for higher energy costs and layoffs even when AI may not be the direct cause.

Apollo Global Management Chief Economist Torsten Sløk said there is "zero evidence" that AI has triggered broad employment losses, pointing to hiring in AI implementation, data centers, semiconductors and energy sectors.

He said the AI boom could increase economic activity through the "Jevons paradox," where efficiency gains create more demand and new opportunities.

Amazon.com Inc founder Jeff Bezos also rejected predictions of mass AI-driven unemployment, arguing that AI will improve productivity, empower workers and potentially create labor shortages as lower costs drive economic growth.

Microsoft, Meta Shift Workforce Toward AI

Microsoft Corp. and Meta Platforms Inc. reshaped their workforces around AI as both companies pursued greater efficiency and AI-driven growth.

Microsoft eliminated 4,800 roles while saying the cuts were due to business changes, not AI replacing workers, and planned to invest in AI training.

Meta moved about 7,000 employees into new AI-focused divisions while cutting roughly 8,000 jobs, creating "AI-native" teams designed to improve productivity and accelerate AI development.

Photo courtesy: Shutterstock

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