They aren't replacing people directly though, like an AI can't fill a seat that a person used to. The claim seems to be that individuals are more productive now so less people are needed.

Measuring productivity has been attempted by every big tech co. and has never really had amazing results. So to claim they can lay off 1,000 people because of "AI" means they must have measured some % increase in individual productivity and know they can function with less people.

Or it's just a big excuse to cut low performers and compensate for overhiring.