We Fired Our 5-Year Labor Economist. Then We Realized AI Layoff Excuses Are a Total Scam

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(SeaPRwire) –   By: Christian Pierce

Every enterprise leader today is scrambling to pivot to AI-driven operations. They talk about efficiency and leaner teams like it’s the only path forward. But Syndio’s recent experience with Jonathan Vidales exposes a fatal flaw in this rush.

In May, Syndio cut roles during a company redesign. Jonathan, a labor economist with five years at the firm, was let go. The company redefined other jobs, asked remaining staff to take on more responsibility and quotas. Leaders assumed staff would stay, given tight labor markets. They were wrong. Several key employees resigned within months. In August, Jonathan applied for a new open role and was rehired. He told the team he felt like sneaking back after being kicked out. He still had the cold, impersonal restructuring email in his inbox. He questioned why the company didn’t acknowledge departing staff with simple kindness. Industry data backs this chaos. May saw 97,000 US job cuts, 40% blamed on AI. Zillow cut more than 500 roles pre-earnings, per Challenger, Gray & Christmas. A 2026 Robert Half study found 3 in 10 employers cut AI-linked roles then rehired for them later.

Former Lululemon executive Julie Averill coined terms for this trend: “AI wishing” and “AI washing”. Leaders either wave AI at problems without planning, or use it as a cover for cuts that don’t deliver real efficiency. Syndio needed to shift to an AI-centric business, but the company skipped critical steps. They didn’t invest in training existing staff to adapt to new roles. They treated institutional knowledge like a disposable commodity. The real end game for this industry isn’t just more AI pivots. It’s a reckoning for leaders who prioritize trends over the people who build their business. The only way to avoid costly, avoidable turnover is to stop hiding behind AI and start investing in the team you already have.

Author bio: Christian Pierce, chief financial columnist and markets commentator with 15+ years covering enterprise SaaS and corporate talent trends.