AI has increasingly been cited by companies as a reason for reducing their workforce, especially as businesses adopt new tools that promise to automate parts of their operations. But Will Ahmed, founder and chief executive of wearable technology company Whoop, believes the explanation is sometimes overstated. In his view, AI is being used as a convenient justification for layoffs that may actually be linked to other business realities.
Speaking about the current wave of job cuts across industries, Ahmed suggested that artificial intelligence has become an easy explanation when companies announce workforce reductions.
“There is a lot of companies that are doing layoffs right now and blaming it on AI,” Ahmed said. “But they are actually doing layoffs because the businesses aren’t performing particularly well. And it’s a convenient excuse.”
His remarks come at a time when several technology companies have announced layoffs while simultaneously emphasising investments in AI. Payments firm Block, led by Jack Dorsey, recently said it had cut more than 4,000 jobs as part of a broader overhaul aimed at embedding artificial intelligence across its operations and improving efficiency.
Other major technology companies have also announced workforce reductions in recent months. Amazon said earlier this year that it would fire about 16,000 employees. Meta has removed more than 1,000 positions from its Reality Labs division as it redirects resources toward artificial intelligence wearables and new smartphone features. Pinterest has said it will reduce “less than 15 per cent “of its workforce and scale down office space as it shifts resources toward AI initiatives. Software company Autodesk has also announced plans to cut around 1,000 jobs.
Layoffs have not been limited to technology companies. Investment bank Morgan Stanley has also reduced its workforce, cutting about 3 per cent of its employees, or roughly 2,500 people, across divisions including investment banking and trading, wealth management and investment management. The reductions did not affect financial advisors. According to a person familiar with the matter, the move was based on strategy and individual performance, and the bank plans to hire in other areas.
The layoffs at Morgan Stanley come despite strong financial results. The bank reported record annual revenue in 2025 and beat Wall Street estimates for fourth-quarter profit earlier this year, helped by a sharp increase in investment banking activity as dealmaking accelerated and debt underwriting fees rose.
While several companies are shrinking their workforce, Whoop is planning the opposite. Ahmed said the company intends to expand its staff significantly this year as it prepares for future growth and a possible initial public offering.
The Boston-based company plans to increase its workforce by as much as 75 per cent and add more than 600 roles across departments, including software, research, design, hardware, product development, manufacturing, sales and marketing. Most of the new positions will be based at Whoop’s headquarters, although the company will also hire in other markets.
Recruitment is planned across North America, Europe and Asia, as well as in Gulf Cooperation Council countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Whoop currently operates in about 60 countries, and international markets now account for roughly 60 per cent of its sales. Four years ago, the United States made up around 70 per cent of its member base.
Founded in 2012, Whoop develops screenless fitness bands designed to track health data such as sleep, recovery and physical strain. The company currently employs nearly 800 full-time staff after adding almost 300 employees over the past two years.
Ahmed said the company’s hiring plans are tied to new technology it wants to build in the health and wellness space.
