AI hasn't really replaced all the jobs jobs. I don't think it works well enough to do a job on its own. People are being fired because companies are hurting, but they don't want to admit that to their share holders.
"It’s much more palatable for companies to say, “AI replaced you” than to say, “we no longer need as many engineers because the market is flooded.” AI becomes a psychologically easier rationale for both internal morale and external messaging."
Also outsourcing is preferred. “firms have strong economic incentives to replace expensive domestic labor with cheaper, equally skilled overseas workers, a practice that predates the AI boom. Citing AI masks the continuing globalization of tech labor, allowing firms to make cuts while maintaining a “futuristic” cover story."
https://www.forbes.com/sites/shivaramrajgopal/2025/08/17/is-ai-the-scapegoat-employers-use-to-explain-technology-layoffs/
