Kratsios says AI blamed for layoffs
Analysis based on 6 articles · First reported Aug 06, 2026 · Last updated Aug 10, 2026
The comments may influence investor perception of AI-related layoffs, potentially affecting tech stock valuations as companies use AI narratives to justify workforce reductions. The debate over AI's role in job cuts could impact sentiment toward AI-exposed companies and the broader labor market outlook.
White House science and technology adviser Michael Kratsios said on the 'Moonshots with Peter Diamandis' podcast that some companies are blaming AI for layoffs that would have happened anyway, because it 'plays better in the press.' Host Peter Diamandis noted that framing layoffs around AI can boost stock prices if investors believe revenue is growing with fewer employees, and Kratsios agreed. Kratsios expressed long-term optimism about AI's impact on jobs. OpenAI CEO Sam Altman had earlier acknowledged 'AI washing' in layoff announcements. Business Insider tracked 17 companies, including Uber, Snap, and Block, that cited AI in layoff decisions. Kratsios also criticized AI 'doomers' for fueling public skepticism, echoing Nvidia CEO Jensen Huang. He helped craft the Trump administration's AI Action Plan and accused Moonshot AI of improperly distilling its model from Anthropic's Fable 5. The comments come amid ongoing tech sector restructuring, with Microsoft eliminating about 4,800 jobs while expanding AI investments, and Meta moving 7,000 employees into AI-focused teams while cutting 8,000 positions.
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