One of the most talked-about and shocking revelations in the tech industry this week came from leading software investors who admitted that many tech CEOs are quietly planning significant layoffs due to AI adoption — while publicly dodging the topic to avoid backlash and panic among employees.
In a recent episode of the Twenty Minute VC podcast, investors Jason Lemkin and Rory O’Driscoll revealed that numerous CEOs have privately acknowledged the potential to cut 30–40% of their workforce thanks to AI efficiencies. Yet, in public, these same leaders insist they’re still hiring and that employees remain essential.
Lemkin pointed to companies like Klarna and Duolingo, which faced criticism after announcing AI-driven changes, only to backtrack later. O’Driscoll noted that CEOs are avoiding discussions about job losses to prevent employee unrest, instead using vague promises that AI will "enable more interesting work."
Klarna’s CEO, Sebastian Siemiatkowski, stated in December that AI "can already do everything" humans do, adding that the company halted hiring over a year ago. Facing pushback, he later walked back his comments, admitting his push for AI-driven layoffs might have gone too far.
Similarly, Duolingo’s CEO, Luis von Ahn, shared plans on LinkedIn to make the company AI-first, only to later clarify that he doesn’t see AI replacing his "amazing employees" and that Duolingo is "hiring at the same pace as before."
Lemkin predicted that mass layoffs could hit within the next two years as companies chase efficiency gains. O’Driscoll forecasted a gradual hiring decline, especially in tech, with annual reductions of 2–3%.
Data from Layoffs.fyi underscores the trend: as of mid-May 2025, over 61,000 employees have been laid off across 130+ companies, including giants like Microsoft, Google, Amazon, and CrowdStrike. These cuts aren’t tied to financial crises but to rapid AI integration into business processes.
Also read:
- Torturing AI: A Dangerous Path to Better Performance?
- Cremation Surges in the U.S., Reshaping the Funeral Industry
- Gas Rules America, Not What You Thought: It’s Gas
Adding fuel to the fire, Anthropic CEO Dario Amodei recently warned that within five years, AI could replace up to 50% of entry-level office jobs, potentially driving unemployment to 20%. He highlighted that companies are increasingly using AI to cut costs rather than boost employee productivity.
Unlike others, Amodei was candid, urging AI companies and governments to stop "sugarcoating" the risks of mass layoffs in sectors like tech, finance, law, and consulting.
The disconnect between private plans and public statements reveals a brewing storm. As AI reshapes the workforce, the tech industry’s leaders may soon have to face the consequences of their quiet confessions.
