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AI May Be the Excuse for Layoffs When Leadership Is the Real Reason

A CEO announces a major AI initiative.

A few weeks later, hiring slows. Then comes a reorganization. Then people quietly disappear from the org chart. All without any meaningful explanations.

The result is what I call a “Truth Gap,” which is the distance between what leaders know and what they are willing to share.

And when the Truth Gap grows, people naturally fill in the blanks. As human beings, that’s what we do. We are meaning-making machines, often using our worst-case fears to connect the dots.

Layoffs at Amazon, Meta, Salesforce, AI as Reason or Excuse?

All kinds of AI-related reasons (AI washing) were given for the recent round of massive layoffs at Amazon and Meta and Salesforce.

However, analysts say that in all three companies the main driver was pressure from Wall Street for steady profit margins. And underlying that is the longstanding priority of putting shareholders first. Which is the real leadership issue.

Employees have a sense when they are being misled or given only partial truths. In the long run, leaders pay a big price for not being honest.

What People Expect from Leaders

Most employees know leaders don’t have crystal balls and don’t expect certainty. What they do expect is honesty. They expect you to tell the truth about what can be said, acknowledge what cannot be said, and be honest about what remains unknown.

What employees struggle with is uncertainty, silence, and the feeling that something important is being hidden.

Leading from Fear: Who Are You Protecting?

When you withhold information, there must be a protective reason for you to do so. Maybe you’re protecting your people.

Often though, you’re protecting yourself. From conflict. From disappointing people. From difficult emotions. From angry investors. From losing your job.

That’s not a character flaw. It’s being human, and it results in leading from fear.

The Alternative is to Lead with Love

Love does not mean being soft. It means respecting people enough to tell them what you know, what you don’t know, and what you’re still trying to figure out.

Though the business decision may be identical whether you lead with fear or love, the quality and impact of your leadership most definitely is not.

Instant Thought Experiment

Think of someone waiting for clarity from you. Ask yourself what truth you’re withholding and what story might they be creating in the absence of information?

Now imagine you filled the Truth Gap. Notice what shifts in you.

Mirror

༄ Where am I creating a Truth Gap for others?

༄ What am I assuming would happen if people knew the truth?

Window – 2 Examples of Leadership Decisions & the Truth Gap

Shopify CEO Tobi Lütke told employees that requests for additional headcount should first demonstrate why AI couldn’t do the work. Employees may not have agreed with the demand, but they didn’t have to guess what it was. Clarity reduces the Truth Gap.

In contrast, CEO Vishal Garg at Better.com, laid off roughly 900 employees who learned they were losing their jobs during a one-way Zoom call. Blind-siding teams with a mass corporate eviction destroys psychological safety and instantly blows open the Truth Gap.

Door Into Action: 5 Amare Steps to Reduce the Truth Gap

1. Identify the story behind your silence. Complete this sentence: “If people knew this…” What are you assuming would happen?

2. Tell people one thing you know. Share one fact this week that people are likely wondering about.

3. Name one thing you don’t know. State clearly what remains uncertain and when you may know more.

4. Read your message from their viewpoint. Identify the questions people will ask and answer them before they ask.

5. Schedule the conversation. Put the difficult discussion on your calendar today.

Amare Team Talk

At your next meeting, discuss three questions: Where are people filling in blanks with stories? What information would help us work with greater confidence? What truth would strengthen trust if we shared it sooner?

Your Inspirational Challenge

This week, notice where you may be creating a Truth Gap. Notice what you’re withholding. Notice why.

Then ask yourself a difficult question: Am I protecting my people? Or am I protecting myself?

The answer will tell you exactly what conversation needs to happen next.

– Moshe

Today’s Amare Wave Wednesday Quote

“The single biggest problem in communication is the illusion that it has taken place.”

— George Bernard Shaw, Irish playwright

Click here and read more Amare Wave Wednesday newsletters on related topics:

AI as Humanity’s Mirror and Megaphone: How to Lead in Today’s AI Revolution

Leading with Truth in in a World of Deepfakes, AI, and Nonstop Disruption

6 Powerful Steps to Improve by Being A Truth-Centered Organization

The Crazy Thing About Truth in Business

Millions of People Watched Lionel Messi Miss in the World Cup. What He Did Next May Change How You Lead.

   

Original article published on Inc.com.

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I'm Moshe engleberg

Moshe Engelberg, Ph.D.

Hi, I''m Moshe

I’m here to help you improve as a leader—as your highest self—with clarity, courage, and love.

Yes, I’ve earned three advanced degrees, advised world-class organizations, taught at several universities, and coached extraordinary leaders.

And what matters most is this:

I will see the greatness in you—maybe before you do. I will help you tap into your full power and boldly take inspired action that uplifts your organization for good.

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