Is AI Really Taking Jobs? Or Are Employers Just 'AI-Washing' Normal Layoffs?

The New York Times lists other reasons a company lays off people. ("It didn't meet financial targets. It overhired. Tariffs, or the loss of a big client, rocked it...") "But lately, many companies are highlighting a new factor: artificial intelligence. Executives, saying they anticipate huge changes from the technology, are making cuts now." A.I. was cited in the announcements of more than 50,000 layoffs in 2025, according to Challenger, Gray & Christmas, a research firm... Investors may applaud such pre-emptive moves. But some skeptics (including media outlets) suggest that corporations are disingenuously blaming A.I. for layoffs, or "A.I.-washing." As the market research firm Forrester put it in a January report: "Many companies announcing A.I.-related layoffs do not have mature, vetted A.I. applications ready to fill those roles, highlighting a trend of 'A.I.-washing' — attributing financially motivated cuts to future A.I. implementation...." "Companies are saying that 'we're anticipating that we're going to introduce A.I. that will take over these jobs.' But it hasn't happened yet. So that's one reason to be skeptical," said Peter Cappelli, a professor at the Wharton School... Of course, A.I. may well end up transforming the job market, in tech and beyond. But a recent study... [by a senior research fellow at the Brookings Institution who studies A.I. and work] found that AI has not yet meaningfully shifted the overall market. Tech firms have cut more than 700,000 employees globally since 2022, according to Layoffs.fyi, which tracks industry job losses. But much of that was a correction for overhiring during the pandemic. As unpopular as A.I. job cuts may be to the public, they may be less controversial than other reasons — like bad company planning. Amazon CEO Jassy has even said the reason for most of their layoffs was reducing bureaucracy, the article points out, although "Most analysts, however, believe Amazon is cutting jobs to clear money for A.I. investments, such as data centers."

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