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