AI layoffs or 'AI-washing'?

A New York Times article examines whether recent layoffs at technology companies stem from artificial intelligence or represent a trend of AI-washing. The piece questions how many firms are genuinely adapting to AI efficiencies and how many are using the technology as a cover for other problems such as over-hiring during the pandemic. AI served as the stated reason for more than 50,000 layoffs in 2025. Amazon and Pinterest were among the companies that blamed the technology for the cuts. A Forrester report published in January argued that many companies lack mature AI applications ready to replace the eliminated roles. The report described the practice as attributing financially motivated cuts to future AI implementation. Molly Kinder, a senior research fellow at the Brookings Institution, observed that the AI explanation offers an investor-friendly message. She noted it avoids admitting that the business is ailing.