Business · 2026-10-27

Is AI really taking jobs? Sigma Software CEO on IT layoffs

Sigma Software CEO Valery Krasovsky argues that talk of AI-driven layoffs is overblown, because big tech companies previously hired far more people than they cut.

✨ What the CEO said

Sigma Software Group CEO Valery Krasovsky believes the hype around AI-driven layoffs is greatly exaggerated. In a Facebook post, he wrote that current job cuts are neither an AI revolution nor a crisis, but a "small correction". In his view, companies often call layoffs "AI" because it sounds more modern than admitting they over-hired earlier.

Krasovsky cited a figure of 128,000 layoffs, which he said looks alarming in a headline. However, he argued that against the backdrop of a million hires during the pandemic and doubled revenues, such a number means little.

📌 The numbers behind his argument

Krasovsky analyzed 16 of the largest global brands, several of them tech companies. Together they cut 128,000 employees. Meanwhile, their revenue has grown 142% since 2019, and their headcount has increased 85%. According to his calculations, only 3% of employees were affected by the cuts.

Among the companies he reviewed are Amazon, Microsoft, Meta, Oracle and others. He said that for each of them, hiring in previous years was many times larger than the current cuts.

🔹 The Oracle example

Krasovsky singled out Oracle. He wrote that the company hired the least, its revenue grew the least, and yet it cuts the most. In his view, AI did not replace people here. A company with $500 billion in AI contracts in its backlog is, he said, deliberately shifting money from salaries to data centers. Other companies on the list, in his opinion, are simply doing what growth requires and are not hiding behind the word "efficiency".

🔸 How to check layoff news

Krasovsky urged the IT community to focus first on two metrics: headcount and revenue per employee, rather than loud headlines. Earlier, dev.ua reported that AI-related layoffs may prove costly: almost a third of those laid off are expected to be rehired by 2029, but at a higher price.

Sources: 🔗 DOU/dev.ua