AI layoffs or ‘AI-washing’? | TechCrunch

AI layoffs or ‘AI-washing’? | TechCrunch

How many of the corporations with latest layoffs are really adapting their workforces to the efficiencies and challenges of artificial intelligence? And how many of them had been just utilizing AI as an excuse to cowl other issues?

That’s the query posed by a New York Times article on the development of “AI-washing,” the place corporations will cite AI as the motive for layoffs that may really be brought on by other components, like over-hiring during the pandemic.

AI was the acknowledged motive for more than 50,000 layoffs in 2025, with Amazon and Pinterest among the tech corporations who blamed the technology for latest cuts.

But a Forrester report printed in January argued, “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.”

Molly Kinder, a senior research fellow at the Brookings Institute, famous that saying layoffs had been brought on by AI is a “very investor-friendly message,” particularly when the various may imply admitting, “The business is ailing.”

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