AI and layoff fears fuel paranoia among white-collar office workers
NEW YORK, UNITED STATES — Paranoia has crept into the white-collar workplace, as fears around layoffs and artificial intelligence shake employee confidence.
Workers across industries are reporting heightened anxiety, with many scanning for subtle signals that job cuts may be coming.
Amber Smith, 28, knew something was off when her IT support ticket wouldn’t go through. That’s how she discovered she had been laid off for the second time in a year. Before that, routine meetings and manager check-ins had already begun to feel ominous.
Despite layoff levels being historically low, headline-making job cuts at major companies and the growing influence of AI technologies have made job security feel more fragile than ever.
Meanwhile, pressure to return to the office, the elimination of middle-management roles (“The Great Flattening”), and a tougher corporate culture are further stressing workers out.
‘Paranoid attribution’ is hurting productivity
Psychologists and management experts say this hypervigilance is affecting how people work. Michele Williams, a management professor at the University of Iowa, says it’s fueled by a phenomenon known as “paranoid attribution.”
“If the boss walks by and doesn’t say ‘hi,’ are they planning to fire me, as opposed to the boss was just busy that day and just didn’t notice you?,” Williams told Business Insider.
“They’re looking for these social cues and overinterpreting social cues because of that insecurity.”
This paranoia often leads to a decline in productivity. Some employees begin hoarding knowledge to make themselves indispensable, which hinders collaboration and stifles innovation.
Mark Freeman, a 65-year-old tech veteran, suggests employees adopt a proactive mindset. “As soon as they say, ‘Don’t worry, no one’s getting laid off,’ you should get your résumé out there and start looking, because you can’t believe them,” he said.
Workers rethinking the role of work
For some, multiple layoffs have sparked a deeper career reckoning. Monica Wiant, 47, was let go twice over a two-year period despite receiving solid performance reviews. She now says she no longer expects purpose or fulfillment solely from her job.
“I feel like so many companies have lost sight of how important the human experiences of their employees are. There’s no place that’s less motivating than a downsizing workplace,” Wiant said.
“It’s really hard to go to work every day and to know that you may not have a future here no matter how hard you work.”
Some individuals, such as Smith, have completely abandoned corporate life. “I feel so much better because being self-employed, obviously, I’m not going to get laid off,” Smith said.
