COMPANIES RUSH TO CUT JOBS FOR AI THEY DON'T UNDERSTAND

Levie characterized the phenomenon as "AI psychosis," noting that decision-makers implementing AI replacements often lack deep understanding of the roles being eliminated. ClickUp exemplified the trend by cutting 22% of its workforce to deploy AI agents, joining a wave of tech layoffs driven by AI optimization promises. The acceleration is stark. 2026 tech layoffs have nearly matched the entire 2025 total in just weeks, signaling a broad industry shift toward AI-driven workforce reduction without corresponding evidence of job transition planning or long-term productivity gains. The gap between executive confidence in AI capabilities and actual operational knowledge raises questions about whether these cuts serve genuine efficiency or reflect hype-driven decision-making. The outcome remains dependent on whether displaced workers can transition to emerging roles and whether companies' AI implementations deliver promised returns.