AI layoffs or ‘AI-washing’?
Key Points:
- A New York Times article questions whether companies citing AI as the reason for recent layoffs are genuinely adapting to AI efficiencies or using it as a cover for other issues.
- Over 50,000 layoffs in 2025 were attributed to AI, with companies like Amazon and Pinterest blaming the technology for job cuts.
- A Forrester report highlights that many companies lack mature AI applications to replace laid-off roles, suggesting a trend of "AI-washing" where layoffs are framed as AI-related for financial optics.
- Experts like Molly Kinder from the Brookings Institute argue that blaming AI for layoffs is a more investor-friendly explanation than admitting underlying business struggles.