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Tech's AI Layoff Excuse: How Wix, Block and Others Mask a Decades-Old Shift to Disposable Staff

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Tech executives keep pointing to artificial intelligence as the force behind wave after wave of job cuts. The pattern looks familiar to Paul Osterman. The MIT Sloan professor emeritus has watched companies promise leaner operations for 20 years. Now they have a fresh label for it. Wix became the latest to join the chorus. Late last week its CEO Avishai Abrahami told employees and investors the Israel-based website builder would shed about 20% of its workforce. That meant roughly 1,000 positions from a headcount of 5,277 at the end of the first quarter. He cited currency pressure from a strong shekel. He also highlighted AI. Fortune reported Abrahami called the technology “the most significant shift in how companies are built since the invention of modern programming languages in the 1970s.” The company needed to become “a faster, leaner, and flatter organization.” His words carried echoes. Block CEO Jack Dorsey opened the year with plans to cut 4,000 jobs.…

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