69% of Employees Think ‘AI Layoffs’ Are Just an Excuse

Payroll | January 8, 2026

69% of Employees Think ‘AI Layoffs’ Are Just an Excuse

New research by INTOO reveals an American workforce increasingly shaped by economic uncertainty, automation (recent or potential), and skepticism toward leadership decision-making.

Isaac M. O'Bannon

Layoff anxiety has surged since last measured in 2019, with more than 3 in 5 employed Americans1 (61%) concerned about being laid off—a nearly 30% increase since 2019 (48%)—according to The Employee Mindset Report, new research by INTOO, the career development and outplacement leader, conducted on their behalf by The Harris Poll.

The study reveals an American workforce increasingly shaped by economic uncertainty, automation (recent or potential), and skepticism toward leadership decision-making. From rising fears of automation to a belief that most layoffs in recent years reflect poor business management, the findings point to a critical need for greater transparency, predictability, and employee support from organizations.

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Key Findings

  • Layoff anxiety is rising sharply: 61% of employees are concerned about job loss, up from 48% in 2019.
  • Automation fears have doubled since 2019 (6% → 12%).
  • 76% of employees believe most layoffs over the past few years could have been avoided with better business management from leadership.
  • 69% of employees agree that “AI layoffs” are just an excuse for cost-cutting.
  • Nearly half of employees (49%) would trust employees’ social media posts over CEO announcements when it comes to the real story behind layoff news.
  • 52% would take a pay cut for guaranteed job protection from layoffs over the next two years.

“Employees are telling us that uncertainty is their new baseline,” said Mira Greenland, Chief Revenue Officer at INTOO. “This level of anxiety is a clear call for employers to communicate more transparently, offer predictable career pathways, and be intentional about how automation and workforce decisions are made.”

Implications for Employers

The report outlines several priorities for HR and business leaders:

  • Radical transparency in business and workforce communication
  • Investment in internal mobility, reskilling, and upskilling as automation anxiety grows
  • Clear, predictable workforce strategies to reduce uncertainty
  • Stronger manager enablement to address employee concerns directly
  • Humane, well-communicated layoff processes backed by outplacement and support services

Click here to download the full report.

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