This is how I see this and most other "AI layoffs".

The company is going through a hard time, and we need to let people go. So how do we explain it in a way that isn't gonna scare investors away?

Do we admit that we overhired, or that we're running out of money, or that we couldnt find the right markets? No, we don't. Instead, we explain the layoffs as AI.

This way, investors will think we are innovating, and may not think to look deeper to see the actual issues.