Jensen Huang Slams Executives Using AI as a Lazy Excuse for Layoffs

Nvidia CEO Begs Execs to Stop Telling Workers They're Fired Because of AI

We've long had our doubts about tech leaders making boisterous claims about automating jobs with AI. For a while now, executives have raised eyebrows by justifying sweeping layoffs by arguing that AI had made thousands of roles redundant. But as reality settles in and the tech's real-world capabilities are coming into focus, some in the industry are starting to sing a dramatically different tune. Most recently, Nvidia CEO Jensen Huang scorned other executives for wrongly justifying layoffs with AI -- and telling them to cut it out. The hidden implication: soaring costs are the real culprit, especially when it comes to AI-related spending, mismanagement, and over-hiring. "The narrative that connects AI to job loss, for many of the CEOs that are doing it -- it is just too lazy," Huang told Channel News Asia. "AI has just arrived, how is it possible they're already losing jobs?" "How is it possible that AI became productive and useful only six months ago, and they were somehow laying people off two years ago because of AI?" he added. "It doesn't make any sense." Huang didn't beat around the bush in his searing comments. "It was just a way for them to sound smart and I really hate that," the CEO argued. "I think we're scaring people, and that's irresponsible." We've long suspected that CEOs have been trying to mislead investors by claiming that much human labor was simply no longer needed in the age of AI. In one particularly telling episode earlier this year, Twitter founder and Block Inc (formerly Square) CEO Jack Dorsey announced he was slashing his company's workforce by "nearly half," citing the emergence of "intelligence tools" that are "accelerating" changes. Former staffers quickly threw cold water on his claims, arguing the layoffs were actually the result of over-hiring, particularly during the COVID-19 pandemic. Instead of a dramatic rise in productivity, what's far more likely is that companies are draining their pockets by making enormous investments in AI. That's especially pertinent as the cost of accessing AI cloud computing resources continues to soar, forcing companies to slow down hiring. To Huang, it's the result of a lack of ambition, more than anything else. He also remains hopeful about AI ultimately leading to more jobs, not fewer. "It's more likely that the companies with ambition will be more productive, they will do things faster, their company will increase in velocity," he told Channel News Asia. "As a result, they become larger, more profitable. When they become larger, more profitable, they'll end up hiring more people." "Of course, they'll use more AI, but they will also hire more people," he added. It's a shift in messaging. Just last year, Huang warned in a CNN interview that "if the world runs out of ideas, then productivity gains translates to job loss" and that "everybody's jobs will be affected" while "some jobs will be lost." Huang isn't alone in dismissing AI layoffs. Just last week, Google DeepMind CEO Demis Hassabis accused leadership at other companies of a "lack of imagination" for blaming layoffs on AI. In short, it's a harsh reality check that flies in the face of ongoing narratives being pushed by executives desperately trying to convince investors that unprecedented levels of spending are justified. "This is not a minor disagreement about messaging," marketing publication State of Brand wrote. "This is the people selling the shovels telling the miners to stop blaming the shovels for the cave-in."

Nvidia CEO Jensen Huang calls AI a "lazy" excuse for layoffs

"I think the narrative that connects AI to job loss, for many of the CEOs that are doing it, is just too lazy," the Nvidia cofounder and CEO said in an interview with Channel NewsAsia. "AI has just arrived. How is it possible they're already losing jobs? How is it possible that AI became productive and useful only six months ago, and they were somehow laying people off two years ago because of AI?" "It doesn't make any sense," Huang added. "It was just a way for them to sound smart and I really hate that." While Huang didn't name-drop any specific CEOs or companies, AI-linked layoffs have permeated several industries in recent weeks and months. Standard Chartered CEO Bill Winters received backlash when he announced the company would cut 7,000 jobs over the next four years to replace "lower-value human capital" with tech. Just last week, Meta laid off 10% of its workforce to offset heavy spend on AI initiatives. One report from outplacement and executive coaching firm Challenger, Gray & Christmas found that AI drove 25% of job cuts in March.

CEOs Are Blaming AI for Layoffs. Nvidia's Jensen Huang Says That's a 'Lazy' Excuse.

He urged leaders to talk about AI in a more "balanced" way, recognizing both its potential and the need for safeguards. AI has led to 49,135 job cuts this year so far, reports executive coaching company Challenger, Gray & Christmas. The firm tracked that AI was cited as the reason for a record 55,000 job cuts in 2025 in total, so 2026 is already on pace to exceed last year's AI-related reductions. Now, Nvidia CEO Jensen Huang, the leader of the world's most valuable company, says that blaming AI for layoffs is "lazy." "I think the narrative that connects AI to job loss for many of the CEOs that are doing it, it is just too lazy," Huang said in an interview earlier this week with Singapore broadcaster Channel NewsAsia. "AI has just arrived. How is it possible they're already losing jobs?" Huang said that some executives were linking layoffs to AI "to sound smart." "I really hate that," he said. Huang advised leaders to be more cautious when talking about AI's impact. "I think we're scaring people, and that's irresponsible," he said. He explained that the tech world needs to talk about AI in a more "balanced" way, recognizing both its huge potential and the need to develop it carefully, with strong security and clear guardrails. "Tell a story that's optimistic so that people want to be part of it," Huang said. When Meta cut 8,000 jobs earlier this month, its chief technology officer, Andrew Bosworth, said that the company is building towards a future in which AI agents "primarily do the work." Meta conducted layoffs to help pay for its planned $145 billion spend on AI this year, mostly for new data centers and AI chips. Meta is far from the first company to cite AI when conducting layoffs. In the past year, firms from software to finance have touted "AI efficiencies" while slashing staff. For example, in February, fintech company Block conducted a round of layoffs affecting 40% of its workforce, or around 4,000 people. Block CEO Jack Dorsey cited AI as the sole reason for the cuts. "We're going to build this company with intelligence at the core of everything we do," Dorsey wrote in a post on X. "How we work, how we create, how we serve our customers." In March, software company Atlassian cut around 10% of its workforce, roughly 1,600 employees, as it repositioned for the AI era. "We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile," Atlassian CEO Mike Cannon-Brookes wrote in a blog post announcing the news. "We're also changing the way we work." Earlier this month, technology company Cisco announced layoffs affecting up to 4,000 people while reorganizing around AI and redirecting investment into AI-focused roles. Meanwhile, cybersecurity firm Cloudflare said this month that it would cut more than 1,100 jobs, about 20% of staff, as it restructures for what it calls the "agentic AI era."