AI Layoffs Won’t Help You Grow. But They Will Help You Go Bankrupt.
Thursday, February 26.
3:35 pm PST – Jack Dorsey said thank you and goodbye to 4,000 people. Block;s profitability was growing, but the promise of “intelligence tools…paired with flatted teams” enabled a fundamental shift in how the company could be run
4:12 pm PST – He posted his farewell announcement to X for the world to read. In it he wrote, “I know doing it this way might feel awkward. I’d rather feel awkward and human than efficient and cold.”
Is there anything more darkly humorous than a CEO trying to avoid appearing efficient and cold when communicating a decision to make the company more efficient and cold?
Only the moment when your boss calls to ask how your plans to grow the business and going and then informs you that the C-Suite wants a plan “to do what Dorsey just did”
Tuesday, March 10.
Time unknown – The agenda of Amazon’s weekly “This Week in Stores Tech” focused solely on investigating why “the availability of the site and related infrastructure has not been good recently.”
More specifically, why, for SIX HOURS, Amazon customers could not access their accounts, view product prices, or complete checkout. That is nearly $300M in lost revenue assuming the outage only affected North America.
All because, after years of cutting headcount and ramping up AI, junior engineers basically vibe-coded production changes..
As best practices and safeguards are yet to be “concretized,” it’s now the responsibility of senior engineers to review all production changes prepared by junior programmers.
How efficient is that AI looking now?
What we lose when we bet on hype, not proof
Researchers at Oxford have documented companies using AI as justification for cuts they had already planned. A January 2026 survey of 1,006 global executives found that 60% have or will make cuts in anticipation of AI’s impact while 29% plan to slow hiring. Only 2% have laid off staff as a result for actual AI-driven results.
Thousands of people are being laid off based on hype, not proof.
It’s reasonable to expect that, one day, AI will live up to the hype and deliver on all the promises promoters are making. But that’s a long-term bet that only pays out if you survive the inevitable crashes in efficiency, revenue, and institutional knowledge.
When organizations swap out people for “intelligence tools,” they lose institutional memory, the subtle, often unspoken, sometimes subconscious knowledge that makes things work. These are the people who understand your clients, your controls, and why past decisions were made. AI can automate workflows. It cannot replicate that knowledge. And once it’s gone, it’s gone.
And the loss continues even amongst the people who remain.
Research from MIT shows that regular AI use reduces activity in brain networks responsible for creativity and analogical thinking by 55%, and the atrophy persists even after people stop using AI tools. You are not trading people for AI. You are trading people for AI while simultaneously reducing your remaining team’s capacity to think creatively, adapt quickly, and catch mistakes. Operations get fragile. Innovation stalls. And when the AI-assisted work fails, as it did at Amazon, there’s no one left to fix it.
The root of growth is never hype
When the call comes down from on high to “do what Dorsey did” it’s hard to counter with cautionary tales like Amazon or reality checks about the state and capability of the organization.
But you can ask questions:
- Are you cutting based on what AI has delivered or what we expect it to?
- How will we ensure essential institutional knowledge isn’t lost?
- If (when) AI-assisted work fails, who fixes it? Amazon’s answers were still on staff. Will ours be, too?
Growth is essential to every organization. But you can’t cut your way to growth.
AI doesn’t change that fact.
It just makes it easier to believe the hype.
“Reinvention” is the latest C-Suite Priority. It’s also BS
“Change is changing: How to meet the challenge of radical reinvention” – McKinsey
“End to End Reinvention Unleashes a Technology’s Full Potential” – BCG
“Reinvention: The Overlooked Skills Leaders Need Right Now” – Forbes
Don’t look now but we’ve got a new buzzword!
Hello, REINVENTION
Wait, what happened to Transformation?
Oh hon, “Transformation” is so 2025 and for good reason. In a survey of 750 global organizations, researchers found that 52% of respondents suffer from “transformation fatigue,” 44% cite constant change as the reason for their burnout, and more than one-third are considering quitting as a result of never-ending transformations.
Unfortunately, massive technologic, economic, and societal shifts demand executives rethink every aspect of their organizations. So, what do you do when you need to transform but using the word is likely to lead to a revolution?
As fans of The Wire know, you rebrand.
So, Reinvention is the new Transformation?
Yes and no.
Both terms apply to large-scale organizational changes that often hit at the heart of an organization’s operations. As a result, they require leadership commitment, employee buy-in, and lots of money and time to execute.
The difference is that Transformation is positioned as a finite endeavor to increase performance, usually through technology adoption and integration or restructuring. Reinvention, however, “requires leaders to embrace more radical approaches and actions – in effect, to embrace the creative destruction of the company so it creates value in new ways.”
On-going. Radical approaches. Creative destruction.
Just what C-Suite execs want.
Honestly, it sounds like Reinvention is needed so why is it BS?
To be fair, it’s only two-thirds BS.
Building a capability for ongoing change, iteration, and learning isn’t BS. In fact, it’s mission critical in a world of constant change and uncertainty. But this capability requires new mindsets and skills that take time, consistent role modeling by senior leaders, before they stick.
What is BS is the need for radical approaches and creative destruction.
Instead, leaders need to return to their roots and reimagine their future.
Return and Reimagine?
Return
Jørgen Vig Knudstorp is widely credited with saving LEGO from bankruptcy and turning it into the world’s biggest toy company. At the 2025 Thinkers50 Summit, he shared his 10 rules for a successful transformation. Number one, “Why do we exist?” He spent three years trying to answer this question.
Why do we exist? What makes us relevant, valuable, rare, hard to imitate?
The answer isn’t your industry, products, or processes. It’s something more fundamental. It’s the Job to be Done that your organization and ONLY your organization can do.
John Fallon, who led Pearson’s turnaround as their CEO, answered this question in a recent conversation with Outthinkers’ Kaihan Krippendorf.
“The job to be done was not publishing textbooks. The job to be done was empowering people to progress in their lives through learning.”
Reimagine
When you know why you exist, you’re able to go beyond rebuilding to reimagining what your organization could be. Knowing your Why changes how you think about your organization and its potential. It enables you to step out of the hype, ignore the peer pressure, and explore all the future Whats and Hows before committing to action.
Then, and only then, do you commit to action. To concrete changes in business models, operations, and capabilities. To Reinvention.
I think I get it. Reinvention is BS not because it’s wrong but because it skips two essential steps.
Reinvention implies rebuilding, but if you don’t know why your company exists, how can you be sure you’re building something that matters?
And, if your “reimagining” is focused only on the latest tech or doubling down on a dying business model, you’ll never see all the other possibilities that may be more resilient.
Return. Reimagine. Reinvent. The 3Rs. That’s a buzzword I can support.
You Got Buy-In So Why Is Execution Stalling?
Congratulations, you’ve done the hard part required to get buy-in! You asked instead of told, said “I don’t know” out loud, and got genuine buy-in. Your team believes, is engaged, and ready to go. And yet execution is stalling.
What gives?
Activity without Achievement
There’s no doubt that people are working hard. You can see it in their schedules and you hear it in your one-on-ones. But projects are moving slower than they should, decisions that seem straightforward take weeks, and agreements made in meetings are quietly undone. Strategies, buy-in, timelines are powerless against an invisible and unnamed force.
So, you consider your options. A team offsite can provide a helpful rest but there’s no guarantee it sticks when you’re back in the office. Training can help shore up skill gaps, but your team is already capable, so this doesn’t feel like a skill problem. You could reorg but that creates new problems.
Your People Aren’t the Problem
The problem isn’t your people, your team, or even your culture. The problem is the hidden seams between people, teams, and cultures, that create friction.
Because of friction, people hesitate to share information across functional or hierarchical seams. They make assumptions about other generations. They work to achieve individual or functional, rather than collective, goals.
These friction points have been part of your organization for so long that they are accepted as normal. As immoveable and unchangeable as your company’s mission and vision. And because they’re so ingrained, you shift your efforts to things that feel changeable: skills, org charts, and communication plans.
You’re addressing symptoms because the root cause seems impossible to fix.
It’s not impossible.
How One Company Resolved the Friction and Tightened the Seams Without Extra Work
When a K-5 curriculum company decided to expand into the Middle School market, they knew they were asking the project team to do something new that was complex, ambiguous, and fraught with high-stakes decisions.
Six months in, the project was breaking down. Decisions that should have taken a day took weeks or months. Work got stuck as different functions weighed in at different times with different mandatory requirements. People hid problems and gave optimistic updates.
The executive who owned the project had seen this before. In fact, she was seeing it in every project team across the entire company. So, she knew that the problem wasn’t the project or the people, it was something much deeper, something that was such a part of the company’s standard operating process that it had become invisible.
So, she brought in someone (me) who could see things differently and together we sought out the seams, naming the moments when friction occurred, and engaging the team in developing and experimenting with solutions.
And we did it all as part of the daily work.
We redesigned hand-offs in real time, experimented with decision-making rules until we found what worked for multiple decision types, and rewarded people for saying “I don’t know.”
Within six months, the project was back on track and engagement and morale were sky-high. Other teams took notice and asked for advice. New products began shipping on time, on budget, and to rave reviews.
Now the Real Work Begins
Where are your seams showing up? A cross-functional initiative that’s losing momentum? A decision that never seems to stick? A team that’s aligned on paper but stuck in execution?
That friction has a name. And it’s findable.
If you’re ready to find the seams and resolve the friction, set up a SeamSpotter Session. It’s a 60 to 90-minute conversation, no prep required, and you’ll receive a written summary and recommended next steps within 48 hours.
If your team is bought in, but execution keeps stuttering, you can fix it. Email me at robyn@milezero.io to get started.
Compliance is Not Buy-In: The Real Reason Your Strategy Stalls
“None of it worked. When I pulled the executive team back together and asked what went wrong, these executives said, ‘You told us what to do. You never asked us what to do.
“What I should have done is just said, ‘I don’t know.’ And when you say those words, what happens is everybody wants to help you.”
That is how Josh D’Amaro, the newly named CEO of the Walt Disney Company, characterized his defining leadership development moment.
Sound familiar?
Every executive, at some point in their career, has faced this moment. The business is doing poorly, the future is uncertain, and everyone is looking to you for answers.
But few of us learn the lesson that Mr. D’Amaro did. So, we keep telling and wondering why compliance isn’t generating the results we expected.
Compliance and Buy-In are not the same
In our world of “using positive words to describe uncomfortable realities,” we often characterize compliance as buy-in. And that’s a dangerous mistake.
“Compliance,” explains innovation expert Tendayi Viki, “comes from external pressures to follow rules and policies due to fear of consequences. In contrast, buy-in comes from internal motivation where people genuinely view the initiative as valuable and legitimate.”
Compliance is what happened when D’Amaro convened the market and sales executives of Hong Kong Disneyland together and told them “to adjust, build, and set ourselves up for the future.”
When things are not going well and the future is uncertain (and therefore scary) it’s normal to think that, because you are in a role with authority, that you need to have all the answers. But you don’t. Because you can’t. Because no one has the answers.
You need help.
Why Buy-in, not compliance, is required for success
No one is going to help you when they’re afraid. Instead, they’re going to execute orders regardless of their own experiences or judgment, which may be more informed and likely to result in the desired outcome (as was the case with D’Amaro and his team).
But when you ask for help, people help. They feel ownership of both the problem and the solution and seek out creative ideas and alternatives. They work across traditional organizational boundaries, like functions and levels, and they’re more resilient when faced with adversity. Even better for you, they don’t require constant instruction, surveillance, and micromanagement.
Getting buy-in frees you up to do the very thing you want to do: lead a team to a common goal and better future.
Buy-in is NOT another Change Management initiative
I’m sorry to say that getting buy-in is much harder than running the standard Change Management playbook.
Change management gives leaders a structured playbook of communication plans, training schedules, governance milestones. It’s systematic, observable, and leader-driven. And it’s not wrong. It’s just not sufficient to gain buy-in.
Buy-in is individual, nonlinear, and rooted in belief, not process. It forms one person at a time based on trust, relevance, and whether the individual sees themselves in the future state. It happens when one human being trusts the motives and behaviors of another human being.
How to get Buy-In
Earning buy-in requires you to do what D’Amaro eventually learned: invite dissent, share incomplete thinking, and say “I don’t know.” But that’s just the beginning.
You also have to find where things are breaking down internally, the gaps that allowed the situation to grow ever more concerning and dire. And it’s rarely at the obvious boundaries between silos that everyone can see and org charts try to fix.
It’s at the seams: the hidden disconnects between people, decisions, handoffs, and incentives where functions, levels, and priorities intersect. These seams are where compliance lives and buy-in dies. And until you make them visible, you’ll keep mistaking one for the other. But they can be made visible and that changes everything.
Now that you see the difference, where is compliance masquerading as buy-in in your organization?