AI Blamed for 97K Layoffs, But CIOs Say It's a Scapegoat

TechTarget's advisory board with CIOs reveals that despite 97,000+ tech layoffs in 2026 being attributed to AI, most organizations are not actually replacing workers with AI. The real drivers are pandemic over-hiring, shifting costs to fund AI infrastructure, and appeasing Wall Street. ServiceNow's example shows that even when AI automates tasks, 85% of affected employees were upskilled and redeployed. The article argues that blaming AI is a dishonest PR move that erodes trust and damages employer brand, urging leaders to be transparent about true reasons for layoffs. Key signal: More than 97,000 of the 127,000 tech layoffs in 2026 have been attributed to AI, yet most CIOs say they are not replacing workers with AI. For hiring leaders, this matters because for CHROs and TA leaders, this is a critical reality check: AI is not yet the primary cause of layoffs, but it's being used as a convenient excuse. This affects employer branding, candidate trust, and retention. Misleading narratives can backfire, making it harder to attract top talent later. Understanding the real drivers—pandemic over-hiring, AI infrastructure costs, investor pressure—helps leaders craft honest communication strategies and focus on genuine upskilling initiatives, as ServiceNow demonstrates. The data also signals that AI-related roles are growing even as overall tech hiring corrects. Teksands view: Stop hiding behind AI. Candidates and employees see through it. The real story is a market correction and a massive shift of budgets into AI infrastructure. For hiring leaders, this means two things: be transparent in layoff communications to protect your employer brand, and double down on upskilling—because AI is changing roles, not eliminating them overnight. The companies that reskill aggressively will win the talent war when the market rebounds.