Experts Share: How Do Mass AI Layoffs Affect Trust Between Workers And Leadership In Tech?

Large job cuts across industries are really stressing workers out around the world. According to Intellizence data, more than 3,140 companies have announced mass layoffs since the start of 2025. This includes news from Intel cutting 24,000 jobs worldwide to Santander UK cutting 2,000 roles. Such moves often make job hunters, workers and graduates wonder about how much trust they have in leadership once jobs are taken away.

The LiveCareer survey of 1,007 UK workers in March found that 58% expect more layoffs in 2025 than last year. Workers feel this way as living costs keep going up and the economy stays uncertain… they already face pressure, with 79% saying salaries are not keeping up with inflation. In this context, each announcement of cuts deepens doubt about whether leaders are being transparent about the reasons behind them.

A series of layoffs in different sectors adds to that feeling. Paramount is preparing to cut up to 3,000 jobs after its merger with Skydance. Lotus will let go of 550 roles in the UK, while Microsoft is removing 9,000 positions globally. Workers who see such large numbers often wonder if they can trust leaders’ promises about job stability.

 

How Do Job Cuts Affect Staff Confidence?

 

The survey found that 49% of UK workers already fear for their job security. When layoffs take place on the scale seen this year, these fears are reinforced. For many, trust in leadership falls because staff see decisions that appear to place cost savings above people.

Companies often try justify the cuts by saying they are needed to stay competitive. For example, Kroger announced fewer than 1,000 layoffs after a failed merger, while International Paper Co. is closing two mills that have long supported local economies. Even when leaders present financial reasons, staff confidence is weakened because the personal impact is so strong.

The LiveCareer survey also reported that 63% of workers think the labour market has become more competitive in the last year. This rising competition adds pressure and means staff trust their employers less when promises of career growth are later paired with layoffs.

Rebuilding trust will be tricky for these leaders, in all honesty. Workers told LiveCareer that the most valued factors in a job are salary and benefits at 76%, followed by work-life balance at 69%, and job security at 56%. Leaders who want to mend relationships may have to show through pay, stability and working conditions that they value staff.

LiveCareer career expert Jasmine Escalera, said: “The workforce has inside knowledge of their employer’s overall financial health and stability, and are a good judge of what’s to come, for example, if layoffs are imminent.

“More than 58% of our survey respondents expect layoffs to increase this year and 56% think the overall health of the UK labour market will decline. We should take heed and consider this a warning for what’s to come in 2025.”

 

Experts Share: How Do Mass AI Layoffs Affect Trust Between Workers And Leadership In Tech?

 

Experts have weighed in on how they think these layoffs impact the trust workers have in their workplaces…

 

Our Experts:

 

• Sheldon Arora, CEO, StaffDNA
• Pankaj Khurana, VP Technology & Consulting, Rocket
• Debra Andrews, Founder and President, Marketri
• Andrea J Miller, PCC, SHRM-SCP, AI Expert, LeadWell Company
• Tamsin Deasey-Weinstein, National AI Strategist, Cayman Islands
• Steve Morris, Founder and CEO, NEWMEDIA.COM
• Hans Scheffer, CEO, Hello Print
• Mircea Dima, CEO, CTO, Founder and Software Engineer, AlgoCademy
• Igor Trunov, Founder, Atlantix

 

Sheldon Arora, CEO, StaffDNA

 

 

“Salesforce is a savvy company that understands the implications of an announcement like this. Announcing thousands of layoffs and communicating that it’s because AI is automating aspects of its business and needs fewer engineering and support roles says two things. One that sends a message to competitors and shareholders that the company is innovating rapidly and dominating the industry. Two, for upcoming graduates and technology professionals looking to get hired, it makes it clear that they need to get on board with AI.

“Do layoffs based on AI erode trust with workers? Yes, a little, but that’s part of the point. It’s a wake-up call. Any leader who tiptoes around AI and placates employees by saying they’re not replaceable isn’t being truthful. The best leaders will be transparent with their employees and help them reskill and incorporate AI into their roles. AI isn’t an excuse to cut corners; it’s a strategic lever to unlock new workforce productivity.”

 

Pankaj Khurana, VP Technology & Consulting, Rocket

 

 

“The recent increase in automated decision-making, illustrated through Salesforce’s recent reduction in primarily customer service roles, has created new tensions around trust between employees and leadership. For workers to witness automation take hold mainly in the context of layoffs immediately creates a tension around security and authenticity.

“Messages of productivity or innovation through AI that underline the company’s focus on the machine – risk sounding completely absent when the human aspect doesn’t resonate. Can we not do that? Yes and No. The automation of primary human effort is here to stay – from AI capable of writing code to a toaster that makes breakfast; this won’t go away and it will replace most underlying human effort.

“Most of the data and research suggests that trust can be retained when organisations are transparent with their AI strategy, genuinely investing in upskilling or reskilling the ways in which employees are involved in the actual adoption of AI in practice. When organisations do not attend to these issues – it will mean that employees who stay will see themselves as diminished professional value proposition – and will have reduced morale, agency, and commitment over time.”

 

Debra Andrews, Founder and President, Marketri

 

 

“When companies frame layoffs as being “because of AI,” they unintentionally erode one of the most fragile but essential bonds in business: trust between leadership and employees. Workers don’t just hear “efficiency gains” they hear, “your years of expertise are now expendable.” It makes a big credibility gap. Employees begin to question leadership’s intention and wonder if it’s soley about cutting costs. Once that sets in, it’s hard to rebuild alignment around a central goal.

“This is especially harmful at mid-management level. They’re translators between strategy and execution. If they feel like they’re simply the next to fall, they lose the drive to bring curiosity, creativity, and judgment.

“AI should aid rethinking roles and building flexibility into the workforce, not just be for eliminating headcount. Leaders who are transparent about where AI is being applied, invest in reskilling, and maintain a hybrid model that allows for reinvestment in people and AI tools are the ones building trust.

“In my view, the organisations that will stay relevant in this era are those that cultivate an “explorer mentality,” encouraging employees to get closer to customers, to their craft, and to AI as a partner rather than a threat. Trust doesn’t come from avoiding hard truths; it comes from showing that AI is being used to elevate people, not replace them.”

 

Andrea J Miller, PCC, SHRM-SCP, AI Expert, LeadWell Company

 

 

“Mass layoffs, particularly those explicitly linked to AI, do more than just cut headcount; they fundamentally break the trust between workers and leadership. This isn’t just a business problem, it’s a human one. It sends a message that the implicit deal – show up, work hard, and we’ll invest in your future – no longer matters.

“When a company like Salesforce announces a “reorganisation” to get “leaner” with a clear nod to AI’s efficiency, it tells every employee that they’re a variable cost, not a long-term asset. This creates a deep sense of insecurity and betrayal. The remaining workforce often feels like they’re just waiting for the other shoe to drop, and that fear impacts productivity and innovation.

“The ripple effect of this is far-reaching. When employees no longer believe in leadership’s long-term vision for them, they stop giving discretionary effort. Why go the extra mile to build something new if that very thing might make your role obsolete? Instead of engaging with new tools, people become skeptical and resistant.

“The focus shifts from “how can I use AI to be better at my job?” to “is this AI coming for my job?” The professional psychological safety is gone, replaced by a constant state of low-grade anxiety. For a company to succeed in this hyper-competitive world driven by AI, it needs its people to be engaged, adaptable, and willing to learn. You can’t achieve that when your employees feel disposable.

“To repair this damage, leaders must change the conversation from “AI for headcount reduction” to “AI for human augmentation.” This means a massive investment in transparent communication and skill development. It’s not about just offering a few online courses. It’s about building a culture where people see AI not as a replacement, but as a tool that (actually) frees them from repetitive tasks to focus on higher-value, more creative work.

“Leaders need to be honest about the future of roles and proactively provide pathways for employees to grow and add greater value. The companies that navigate this shift successfully won’t be the ones that automate their workforce, but the ones that support their growth. They’ll show that their people are their most valuable asset, and that AI is a tool to realise human potential, not replace it.”

 

 

Tamsin Deasey-Weinstein, National AI Strategist, Cayman Islands

 

 

“The Salesforce layoffs are a critical moment for trust in tech leadership. We keep being told that AI isn’t going to take our jobs and then a major employer replaces 4,000 of its 9,000 customer-facing staff with AI. The trust is shattered.

“But the data still shows we’re entering mass career transformation, not mass unemployment. AI creates reinstatement alongside displacement, with entirely new roles evolving. The disconnect happens when leadership doesn’t invest in transitioning existing talent into these emerging positions. That’s the key.

“Every organisation has a well-trained workforce and also has AI skills gaps. The key is not to lose the good staff you have. The key is to transfer them to new and emerging areas.

“How do we rebuild trust? Employers need to invest in re-skilling their existing workforce. Leadership has to show that embracing AI means elevating its current workforces’ capabilities, not eliminating them.

“The companies that invest in workforce transformation rather than workforce replacement will keep the talent and the trust.”

 

Steve Morris, Founder and CEO, NEWMEDIA.COM

 

 

1. Trust Dies When You Trust AI to Do Layoffs Without Thoughtful Human Involvement

“Nothing wrecks your credibility faster than letting AI make layoff decisions for you. I’ve seen tech companies try this, and the result is outbound public shitstorms, and inbound employee disengagement. The thing to understand about AI is that its output is only as good as its input, and it’s blind to all the important contextual details. Including the cultural aftershocks of cuts within your company culture.

“The deadliest sin, in this context, is to take the output of the AI at face value. We counselled a software company that decided to fire people in layoffs it called “efficiency reviews” based on AI-generated “productivity” scores. They axed whole product teams without realising they’d just destroyed the pipeline for their next quarter’s releases until the employees were all out the door. Those left behind were left wondering whether they themselves might be AI-practically-algorithmically questionable.

“Which, surprise surprise, led to engagement plummeting, institutional memory evaporating, and voluntary attrition ticking up quarter over quarter. Surveys show employees don’t want AI to decide for them, either. According to The People Element’s 2024 HR & The AI Revolution Report, only 12% of employees are comfortable with firing decisions being made by AI. In practice when companies run layoff decisions through an AI without a deliberate human layer, we see lasting damage to employer brand and a spike in high-performer turnover. You can’t send a chatbot to comfort people through change. You need thoughtful, transparent leadership.”

2. The Human Component in Outplacement is Essential if You Want to Restore Trust

“The way you treat people when they’re leaving isn’t just a legal matter or a severance matter either. The clients we see emerge from AI layoffs in the best shape double down on live, in-person outplacement support, not just resume wrangling spit out by chatbots. One fintech client, deeply wounded by an AI-driven layoff round, restored some credibility by promising that any employee fired would get in-person counselling from an experienced career coach.

“Not only did this help soften the blow to those being let go, but it also sent a signal to those remaining that management was thick with humanity. Months later, their engagement scores bounced back, unlike after the previous AI-only firing round. AI can help move paperwork around, but you can’t fix trust wounds with AI. The advice to managers going through change is obvious: use AI for layoff logistics, but double down on human support. That’s a surprise advantage no AI can duplicate.”

 

Hans Scheffer, CEO, Hello Print

 

 

“Yes, Salesforce recently laid off over 4,000 employees, and when something like this happens, it can erode the trust employees have in a company. To the company, it was just a strategic evolution, but to the employees, especially those who lost their jobs, it felt like a betrayal. Now, a lot of tech employees have this feeling that they’re disposable, which fractures the implicit social contract between workers and leadership. I expect more anxiety and skepticism about future intentions.

“Rebuilding that trust requires more than reassignment offerings or internal job application options. It also demands transparent communication and a clear vision that reinforces that people are part of the transformation. Leaders must now try to show that AI augments rather than replaces human work.”

 

Mircea Dima, CEO, CTO, Founder and Software Engineer, AlgoCademy

 

 

“Mass layoffs related to AI, such as the recent Salesforce layoffs can have a profound impact because it undermines the trust between employees and the top management. By introducing labor layoffs in the framework of an AI-induced efficiency, a company will be viewed by many employees as a failure to value the human factor. It conveys the message that even long-term and team members who perform successfully can be substituted by technology. Transparency is necessary in my case being an entrepreneur in a tech-oriented company. Morale and participation decline at a fast rate when alterations occur without background or apparent rationale.

“When the leadership is open to communicate why decisions are made, the long term vision and the way the company will support those affected, trust starts to build up. The employees may feel important and not dispensable when provided with reskilling opportunities or internal mobility. Since beginning as an AlgoCademy student, I have experienced that engineers are both more loyal to their strategic change and their support when they know both the reason behind such changes and the resources available to them when they face difficult changes.

“A strong quote I often share is: “People stay for leaders they trust, not for roles they hold.” AI is not supposed to supplant the trust that employees tend to have in their positions within a company.”

 

Igor Trunov, Founder, Atlantix

 

 

“Mass layoffs tied to AI often create a perception that leadership is prioritising efficiency over people, which can erode trust. When employees see roles eliminated in the name of “innovation,” they may begin to view AI not as a tool to augment their work but as a threat to their livelihoods. This disconnect damages morale and makes it harder for companies to drive true adoption of AI internally.

“The key to maintaining trust is transparency and inclusion. Leaders need to communicate clearly about how AI will be implemented, which jobs are most likely to change, and what reskilling opportunities exist. Companies that frame AI as a way to elevate human potential rather than replace it are much more likely to maintain credibility and loyalty, even during difficult transitions.”
nbsp;

Roman Eloshvili, Founder, ComplyControl

nbsp;

nbsp;
“The fear of losing jobs to AI is a big one, and when companies announce mass layoffs tied to AI, it only grows worse. Workers gradually stop believing that company leadership has their best interests in mind, which erodes trust.

“But the way I see it, a big part of this problem isn’t even the technology itself — it’s how leaders communicate and manage this transition in their companies.

“When any kind of change is announced without context, employees often feel blindsided, and it creates a sense of resistance among them. Why? Because they don’t understand where those changes are coming from, why they are necessary or how they’re going to affect their work.

“In terms of AI, that resistance also leads to people developing an “AI vs. humans” mentality. It damages morale among workers, while the opportunities AI brings are ignored because of all the negative thinking.

“To change things for the better, leaders need to be open about why they want to integrate AI. What goals it’s supposed to achieve in the company. And, above all else, how employees themselves can benefit from this transition.

“That’s how you shift the narrative from AI being the “enemy” to it being a source of strength.”