The New York Times reports that companies have traditionally attributed layoffs to various business factors including missed financial targets, pandemic-era overhiring, tariff impacts, or the loss of major clients. However, a new trend has emerged where corporate executives are increasingly pointing to AI as the primary driver behind workforce reductions, claiming they need to make cuts now in anticipation of technological changes.
According to research firm Challenger, Gray & Christmas, artificial intelligence was mentioned in announcements for over 50,000 layoffs during 2025. This marks a significant shift in how companies frame their workforce reduction decisions to employees, investors, and the public.
Among the most prominent examples is Amazon, which recently announced it would eliminate 16,000 corporate positions, adding to the 14,000 cuts announced in the fall. Andy Jassy, Amazon’s chief executive, wrote in a June blog post: “As we roll out more generative AI and agents, it should change the way our work is done,” and projected that “in the next few years, we expect that this will reduce our total corporate workforce.” However, Jassy later walked back the direct connection between layoffs and artificial intelligence. The company subsequently stated that most cuts were aimed at reducing bureaucracy, though analysts widely believe Amazon is freeing up financial resources for artificial intelligence investments such as data centers.
Pinterest announced last month it would cut approximately 15 percent of its workforce, partially attributing the decision to “reallocating resources to A.I.-focused roles.” Similarly, Hewlett-Packard’s chief executive, Enrique Lores, stated during a November investor call, “We see a significant opportunity to embed A.I. into HP,” indicating this would result in up to 6,000 job cuts over the coming years.
While investors may view such proactive measures favorably, a growing number of skeptics suggest corporations are engaging in what has become known as “AI-washing” — disingenuously blaming AI for layoffs. Market research firm Forrester addressed this phenomenon in a January report, stating: “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.”