How many of the companies announcing recent layoffs are truly adapting their workforces to the efficiencies and challenges of artificial intelligence? And how many are simply using AI as an excuse to cover other problems? This is the question posed by a New York Times article on the trend of “AI-washing,” where companies cite AI as the reason for layoffs that might actually be caused by other factors, like over-hiring during the pandemic.
Artificial intelligence was the stated reason for more than 50,000 layoffs in 2025. Major tech companies like Amazon and Pinterest blamed the technology for recent workforce reductions. However, a Forrester report published in January argued that many companies announcing AI-related layoffs do not have mature, vetted AI applications ready to fill those roles. The report highlighted this as a trend of “AI-washing,” where companies attribute financially motivated cuts to future AI implementation.
Molly Kinder, a senior research fellow at the Brookings Institute, noted that saying layoffs were caused by AI is a very investor-friendly message. The alternative, she suggested, might mean admitting that the business itself is ailing.