What is AI-washing in the context of company layoffs?

AI-washing refers to companies using artificial intelligence as a stated reason for layoffs that may actually be driven by other financial or business issues.

How many layoffs were attributed to AI in 2025?

In 2025, AI was cited as the reason for more than 50,000 layoffs across various companies.

Why might companies use AI as an excuse for layoffs?

Attributing layoffs to AI is considered a 'very investor-friendly message,' potentially masking underlying business problems or ailing operations.

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AI Layoffs: Real Progress or Corporate Spin?

2 Feb

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Summary

Over 50,000 layoffs in 2025 cited AI as the reason.
A report suggests many companies lack AI readiness.
AI excuse is investor-friendly; hides ailing business.

AI Layoffs: Real Progress or Corporate Spin?

In 2025, over 50,000 employees faced layoffs with artificial intelligence cited as the primary reason. Companies such as Amazon and Pinterest publicly linked these workforce reductions to AI integration, a move that has drawn scrutiny.

A Forrester report published in January indicated a concerning trend: many firms announcing AI-related job cuts do not possess ready, vetted AI applications. This suggests a phenomenon termed 'AI-washing.'

This strategy allows companies to frame financially driven layoffs as a response to future AI implementation. Experts note that attributing cuts to AI is a 'very investor-friendly message,' especially compared to admitting broader business struggles.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.