How many of the companies with recent layoffs are actually adapting their workforces to the competencies and challenges of artificial intelligence? And how many of them were using AI as an excuse to cover up other problems?
this is the question An article from the New York Times On the trend of “AI-washing”, where companies will cite AI as the reason for layoffs that may actually be due to other factors, such as over-hiring during the pandemic.
AI reportedly causes more than 50,000 layoffs in 2025 Amazon and Pinterest were among the tech companies that blamed the technology for recent cuts.
But A Forrester report published in January argued, “Many companies announcing AI-related layoffs do not have mature, tested AI applications ready to fill those roles, highlighting the trend of ‘AI-washing’ – attributing financially motivated cuts to future AI implementation.”
Molly Kinder, a senior research fellow at the Brookings Institute, said saying AI caused layoffs is a “very investor-friendly message,” especially when the alternative might mean admitting, “Businesses are sick.”
