Washington, December 8: David Sacks, Donald Trump’s newly appointed AI and crypto czar, has recently stated that the layoffs happening across the country are not due to artificial intelligence. Sacks said that AI was not taking away jobs, dismissing public concerns about the technology. In the United States, several companies have reduced their workforces by cutting jobs that were no longer required or were replaced by artificial intelligence.

In 2025, Intel, Microsoft, Dell, Meta, TCS and others made their companies leaner by laying off large numbers of employees. According to Layoffs.fyi, a website that tracks job cuts, 120,444 tech employees were affected this year across 239 companies. Sacks’ statement comes amid widespread media reports about mass layoffs caused by AI technology. Rejecting these reports, Sacks said that the headlines were distorted and caused “deliberate worry”, according to a report by CNBC TV18. Amazon Layoffs: E-Commerce Giant Lays Off 660 Employees Across New York City, 9 Offices Impacted From Latest Round of Job Cuts.

David Sacks Dismisses Reports Saying AI Is Taking Away Jobs

In October, Challenger, Gray & Christmas shared a report stating that the United States was hit with its highest level of layoffs since 2003 and noted that hiring had slowed to its lowest point in 14 years. The report said that many companies implemented layoffs amid AI adoption in the US, as well as other factors such as softening consumer and corporate spending and rising costs. It mentioned that these conditions led to hiring freezes across the country. Due to reduced recruitment, many laid-off employees were unable to find new jobs.

David Sacks, who was recently appointed by US President Donald Trump as the “White House AI & Crypto Czar”, clarified that the October spike was “anomalous”. He pointed out that layoffs in November had dropped by 53% and that only 6,280 employees had faced layoffs due to AI. Of all layoffs, only 4.7% were attributed to artificial intelligence, he added, noting that “this figure is probably inflated since it is self-reported — CEOs would rather put the blame on AI than their own poor performance.” TCS Layoffs: HR Tells Employee With 14 Years’ Experience To Accept Reduced Severance or Face Termination; FITE Calls for Probe.

Sacks acknowledged that AI will eventually reshape many industries but said today’s job shifts are driven more by hiring freezes and economic slowdowns than by automation. His remarks came as the Trump administration announced its new AI initiative, aimed at balancing innovation with labour stability. He warned governments against “myth-driven policymaking” while still supporting sensible safeguards around emerging technology.

TruLY Score by LatestLY
Rating:3

TruLY Score 3 – Believable; Needs Further Research | On a Trust Scale of 0-5 this article has scored 3 on LatestLY, this article appears believable but may need additional verification. It is based on reporting from news websites or verified journalists (CNBCTV 18), but lacks supporting official confirmation. Readers are advised to treat the information as credible but continue to follow up for updates or confirmations

(The above story first appeared on LatestLY on Dec 08, 2025 03:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).