**The big picture:** Companies are increasingly attributing layoffs to AI investments, but a disconnect exists between the stated reasons and actual impact, often leading to critical skill loss. **Why it matters:** Excluding IT leaders from layoff decisions risks misjudging AI capabilities, leading to unnecessary job cuts and undermining the very productivity gains companies seek. **Between the lines:** - 99% of C-suite leaders anticipate headcount reductions in the next two years. - Nearly a third of HR professionals report critical skill loss due to AI-blamed layoffs. - Only 35% of IT and HR leaders collaborate on AI-related workforce decisions, despite 94% seeing it as a priority. **Staffing & HR impact:** Staffing firms and HR departments face challenges in backfilling lost expertise and ensuring compliance if AI-driven layoffs are based on flawed assessments, potentially impacting gross margins and recruiter mobility. **The bottom line:** Involving IT leaders in layoff decisions is essential to ensure accurate AI assessments and prevent