Since they're using (now expensive) genAI and productivity isn't improving, because it almost never does, rhen they need to do something to appease stakeholders and offset the cost of using genAI, ofc.

That and keeping employee's perception of power and self worth down, so they keep working their asses off in the hopes of not being the next in line.

Because people are too poor to purchase the extra output, assuming that the AI has actually lead to better productivity.

When there isn't enough aggregate demand to absorb extra output from productivity gains, firms will opt to increase profits by reduce their costs by cutting back on spending instead.