Executives at major corporations are speaking more openly about integrating neural networks—and less inclined to hide the fact that this will mean job cuts. Gone are the reassuring forecasts, replaced by blunt warnings: either learn to work with AI or make way for the algorithm. This approach may seem pragmatic, but decades of management research suggest otherwise: fear rarely accelerates change. On the contrary—it fuels anxiety, erodes trust, and ultimately undermines the very transformation it’s meant to drive.
CEOs of major companies are simultaneously alarming employees and pressuring them to embrace AI tools. On the one hand, they warn that new technologies will render a significant portion of the workforce obsolete; on the other—they demand the immediate integration of neural networks into daily operations.
This contradictory messaging breeds unease. Managing through fear is a well-known but questionable tactic: at its extremes, it risks slowing down employees’ adaptation to AI rather than speeding it up.
In a recent statement, Amazon CEO Andy Jassy devoted fourteen paragraphs to the impressive potential of generative AI—and in the fifteenth, acknowledged that the transformation will "likely reduce the overall size of our corporate workforce." A similar tone came from JPMorgan’s head of consumer operations, who assured investors that AI would help cut staffing by 10%. Some companies have already cited "the impact of neural networks" to justify layoffs, while studies and surveys continue to forecast the disappearance of entire professions.
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The reasons behind this harsh tone vary. Some leaders genuinely believe employees underestimate the scale of change. As consultant Brian Elliott notes, some prefer a "more balanced message"—for example, slowing hiring while encouraging colleagues to adopt AI more actively. Shopify CEO Tobi Lütke took this approach: in a letter to staff, he called the use of neural networks "the new normal" and required managers to prove that vacancies couldn’t be filled by algorithms before opening recruitment. Later, Lütke made this letter public.
Other top executives set the informational tone to appear candid and to soften the impact of upcoming layoffs. As Yale School of Management professor Jeffrey Sonnenfeld puts it, such warnings act like a "vaccine," reducing subsequent trauma.
There is also the motive of attracting investors: blunt statements signal to Wall Street that the company is "on trend," and the stock market traditionally welcomes cost-cutting. The "push" from AI vendors plays a role too—they need to free up resources for hardware and specialists, thus fueling the sense of inevitability around large-scale deployments.
However, decades of research show that managing through fear carries toxic consequences: creativity is stifled, teamwork suffers, and the risk of burnout rises. "Many employees think, ‘This is my future robot replacement. Why should I help train the tool that will take my job?’" observed U.S. Deputy Labor Secretary Keith Sonderling at a recent conference.
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