AI is watching, layoffs are rising — inside the terrifying new era of office paranoia

Economic Times

12-07-2025

What Is Paranoid Attribution?
Why Is Workplace Paranoia Happening Now?
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You're walking through the office, and your manager doesn't say hello, the snack in the office becomes worse, the office gets warmer, or your Slack message goes unread a little longer than usual, these instances for many workers today aren't just harmless moments, but they're warning signs, or at least, they feel like they are.Experts call this 'paranoid attribution,' a psychological response where anxious employees begin to assign threatening meaning to normal workplace behavior, as per a report. This phenomenon is becoming increasingly common in today's corporate culture as workers are constantly fearing that they might get laid off.A professor of management and entrepreneurship at the University of Iowa, Michele Williams, explained that "Workers are feeling disempowered," and pointed out that this was seen even during the 2008 recession and is now back again, as quoted by Business Insider. Williams described the feeling, "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?" and added that, "They're looking for these social cues and overinterpreting social cues because of that insecurity," as quoted in the report.ALSO READ: Dogecoin and Shiba Inu skyrocket as meme coins explode during crypto market boom This feeling of paranoia is not just happening out of the blue, but it is happening because of the economic conditions like inflation that have led to layoffs, and structural shifts like AI adoption, return-to-office mandates, and performance pressure, according to the report.Even though the total number of layoffs is still low and mainly happening in white-collar sectors, hiring has slowed in the last year, the unemployment rate is still relatively low, and it has gotten much more difficult to get a new white-collar job, and promotions have reduced a lot, as per the Business Insider report.ALSO READ: Trump lied and didn't want Americans to know - Iran hit top-secret US communications dome at Qatar airbase A 28-year-old employee, Amber Smith, recognised that something was amiss when her IT support ticket would not process, as she had already endured one layoff early in the year, so when her systems suddenly froze, she didn't require an official email to understand that it was happening again, according to the Business Insider report.The paranoia over employment uncertainty drove Smith out of the corporate world entirely as she's now self-employed as a content creator and reseller, reported Business Insider. She shared that, "I feel so much better because being self-employed, obviously, I'm not going to get laid off," as quoted in the report.ALSO READ: Trump's 35% tariff on Canada: Here's what will get more expensive for Americans — and what won't A 65-year-old worker, Mark Freeman, advised that, "As soon as they say, 'don't worry, no one's going to get laid off,' you should get your résumé out there and start looking, because you can't believe them," as quoted by Business Insider. He shared what he has learned in his 25 years of experience, that it is important to be agile and constantly looking for other job opportunities because waiting until after a layoff will mean you're already behind, as reported by Business Insider.Warning signs might include budget cuts, reduced communication, or a sudden freeze on hiring, but sometimes, layoffs come without warning, as per the report.Keep your resume updated, network regularly, and be ready to act because staying prepared can help reduce some of the stress, as per the Business Insider report.