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AI: Jobs, Power & Money
24MAY

Who actually said the word AI

3 min read
15:19UTC

Monday.com's co-founder denied any AI motive for 630 cuts, Zalando blamed network realignment for 2,100, and a widely relayed German AI tally turned out to be an American one.

EconomicDeveloping
Key takeaway

Employers denied the AI motive this fortnight; the trade press applied the label regardless.

Monday.com cut 630 jobs on Wednesday 22 July, about 20% of its workforce and roughly 350 of them in Israel, booking USD45 million to USD55 million in restructuring charges 1. Co-founder Eran Zinman told staff in writing that the cut "was not made to reduce costs or replace people with AI". The trade press counted it as an AI layoff anyway, including in a running list of 2026 AI layoffs published three days later by the same outlet that carried Zinman's denial.

Zalando is closing its Erfurt logistics centre by the end of September, ending 2,100 jobs, 1,800 of them permanent 2. An arbitration award on 9 July sealed the social plan after management and the works council failed to agree, and the German retailer has provisioned about EUR80 million, EUR30 million of that for the Sozialplan, the negotiated package of severance and transition measures German works councils bargain for. No transfer company has been set up. Zalando's stated reason is network realignment after buying About You, plus a new site at Giessen. A German employer shedding that many jobs had the AI framing available this fortnight and did not reach for it.

One figure we relayed did not survive checking. A cumulative tally of 101,743 AI-attributed job cuts circulated in German-language business press on 21 July and read, at a glance, as a German total. It belongs to Challenger, Gray & Christmas, the American outplacement firm, and counts cumulative United States cuts through June, from the same series that produced 45,849 US cuts in June alone . Every company named behind it is American 3. We are not running it as a German number, and no German equivalent exists.

The direction of attribution has flipped over eight weeks. MIT Sloan's Paul Osterman called AI attribution a cover story for cuts already planned , Microsoft's 4,800 July cuts came with an explicit denial that AI had replaced anyone , and Ford rehired engineers while IBM pledged to triple entry-level hiring after cuts went too far . Employers now deny the label. The press applies it for them.

Deep Analysis

In plain English

This story is about getting the previous stories right. Monday.com cut 630 jobs and its co-founder said in writing it had nothing to do with AI. Zalando closed a big German warehouse and the real reason was combining with a company it bought, not AI. And a widely shared number, 101,743, that people thought was a German AI-layoff count, actually comes from an American firm that tracks US layoffs only. None of these three stories were really about AI replacing workers, even though AI got the blame or the credit in each case.

Deep Analysis
Root Causes

MIT Sloan economist Paul Osterman has argued that AI attribution functions as a cover story that can run in either direction depending on the intended audience: a company facing investors may overstate AI's role to signal efficiency gains, while the same company facing employees or unions may understate it to avoid morale damage or legal exposure under works-council consultation rules.

The 101,743 figure's misattribution has a simpler root cause: it is a cumulative running total published by a US outplacement firm, and once translated into German press coverage without that context, a national total read as a nationality label rather than a scope label.

What could happen next?
  • Meaning

    AI attribution in layoff reporting runs in both directions this fortnight: some employers deny a real AI link, others let an unrelated cut be misread as AI-driven.

  • Risk

    Aggregating misattributed national figures like the 101,743 tally into cross-country comparisons will overstate AI's measured role in European job losses specifically.

First Reported In

Update #18 · SAP freezes R&D headcount as others deny AI

SLC CGIL· 27 Jul 2026
Read original
Different Perspectives
Office for National Statistics
Office for National Statistics
Deferred its Transformed Labour Force Survey beyond November 2027 and disclosed a May 2026 telephone-collection failure. The ONS carries no AI-attribution layer at all, so Britain sits outside this month's cohort of measuring states by its own admission.
Uber India, Swiggy, Zomato and Urban Company
Uber India, Swiggy, Zomato and Urban Company
Named as respondents after the Karnataka High Court extended the interim welfare-fee deposit arrangement under the state's gig-worker welfare law to Uber India on 28 July, joining the other platforms already under the same order. The companies are contesting the underlying law while complying with the interim deposit terms.
Kenya State Department for ICT and the Digital Economy
Kenya State Department for ICT and the Digital Economy
Its draft AI policy, open for consultation to 4 August, proposes a pay floor for data-annotation work, where Kenyan annotators earn $1.46 to $3.74 an hour against $21 to $27 in the US, on figures relayed by the trade outlet WeeTracker. Kenya is legislating on AI labour even though the World Bank rates it among the least exposed economies.
ARAN and Italian public-sector unions
ARAN and Italian public-sector unions
Signed the CCNL Funzioni Centrali 2025-2027 on 6 August, the first Italian national contract with a dedicated AI Title, barring fully automated employment decisions without meaningful human intervention and requiring advance union notice of AI deployment. The unions secured this through bargaining rather than waiting for legislation.
US employers reporting to Challenger, Gray & Christmas
US employers reporting to Challenger, Gray & Christmas
Named artificial intelligence as the leading stated cause of job cuts for a fifth consecutive month in July, at 33% of that month's total, even as the overall cut count fell 27%. Employers kept citing AI as the reason even as scrutiny of the attribution rose.
Bank for International Settlements
Bank for International Settlements
Bulletin 130 reports a 0.75 percentage point average unemployment rise across high-AIPI countries between 2023 and 2025, while its own footnote 2 states the index is strongly correlated with employment shares in AI-exposed sectors it is used to predict. The bulletin calls the productivity payoff uncertain and uneven.