Why replacing staff with AI backfires - and 5 ways smart leaders generate real value instead

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ZDNET's key takeaways

  • Some firms cut jobs due to AI and regret their decisions.
  • Smart business leaders focus on value creation instead.
  • They help professionals find new avenues to growth.

Defaulting to AI-enabled layoffs is often seen as a shortcut to cost-cutting. Specialist site jobloss.ai, which tracks AI-enabled layoffs, reported that 126,000 US employees lost their jobs between January 2025 and June 2026 due to AI-related factors.

Ankur Anand, group CIO at recruiter Harvey Nash, told ZDNET it's easy to see why many executives regard AI deployment as a pathway to cost-cutting.

Also: 'Specialists aren't required' anymore: How to stay valuable in an AI agent workplace today

"Early messages from vendors, consultants, and even some boards have focused on productivity, automation, and doing more with less," he said. "Headlines about AI‑related layoffs reinforce the idea that the fastest route...

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