How many companies that have recently made layoffs are actually adapting their workforce to the efficiencies and challenges of artificial intelligence? And how many of them were just using AI as an excuse to cover up other issues?
This is the question asked by an article from the New York Times on the trend of “AI-washing,” where companies cite AI as a reason for layoffs that might actually be caused by other factors, like over-hiring during the pandemic.
AI was the reason cited for more than 50,000 layoffs in 2025, with Amazon and Pinterest among the tech companies that have blamed recent budget cuts on technology.
But a Forrester report published in January “Many companies announcing AI-related layoffs do not have mature, vetted AI applications ready to fill these roles, highlighting a trend of ‘AI washing’ – attributing financially motivated reductions to future AI implementation.”
Molly Kinder, a senior fellow at the Brookings Institute, noted that saying the layoffs were caused by AI is a “very investor-friendly message,” especially when the alternative might mean admitting that “the company is in trouble.”
