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

Mass layoffs across various industries have been reported globally, impacting employee confidence and trust in leadership. Data from Intellizence indicates over 3,140 companies have announced mass layoffs since the beginning of 2025. This includes significant reductions, such as Intel cutting 24,000 jobs worldwide and Santander UK eliminating 2,000 positions.

Impact on Employee Confidence

A survey by LiveCareer, conducted in March 2025, involving 1,007 UK workers, revealed that 58% expect more layoffs throughout the year compared to the previous year. The survey highlighted concerns over job security, with 79% of respondents indicating that salaries are not keeping pace with inflation.

Several major companies have announced job cuts, further affecting employee morale. Paramount plans to cut up to 3,000 jobs following its merger with Skydance, Lotus is reducing its workforce by 550 roles in the UK, and Microsoft is eliminating 9,000 positions globally. Employees often question leadership’s commitment to job stability in light of these large-scale layoffs.

Survey Findings on Job Security

The LiveCareer survey found that 49% of UK workers have concerns about their job security due to the scale of recent layoffs. Companies often cite competitiveness as a reason for these cuts, which can undermine employee trust when financial reasons are presented as justification.

The survey also indicated that 63% of workers believe the labor market has become more competitive over the past year, creating additional pressure and skepticism towards employer promises of career growth.

Expert Insights on AI-Driven Layoffs

Experts have provided insights into how AI-driven layoffs impact trust between employees and leadership. The consensus is that transparent communication and investment in reskilling are crucial to maintaining trust. Leaders need to clearly articulate how AI will be implemented, which roles may be affected, and what reskilling opportunities are available.

Building trust requires a strategic approach that positions AI as a tool to enhance human potential rather than replace it. Companies that successfully navigate this transition will likely retain talent and maintain employee trust.