Back in January, Mews (a hotel property management system) raised $300 million at a $2.5 billion valuation to, among other things, accelerate its AI roadmap. Fast forward six months, and the hotel tech company has announced layoffs affecting about 15% of its workforce (about 170 employees), saying AI has made many of those roles obsolete.
I don’t doubt AI is making teams more productive. It absolutely is. But let’s not pretend every layoff in 2026 is purely an AI story. Investors expect growth, higher margins, and a return on billion-dollar valuations. AI may be the catalyst, but improving profitability probably isn’t hurting the decision either.
Hospitality technology is entering a new phase where companies aren’t just adding AI features; they’re redesigning their organizations around AI. Whether that ultimately delivers better products, better service, or simply leaner payrolls remains to be seen.
We have a feeling there will be plenty more “AI layoffs,” whether they are truly AI-related or not; it seems easier to swallow than “right sizing.”
