US companies accused of AI washing' in citing artificial intelligence for job losses

"Over the last year, US corporate leaders have often explained layoffs by saying the positions were no longer needed because artificial intelligence had made their companies more efficient, replacing humans with computers. But some economists and technology analysts have expressed skepticism about such justifications and instead think that such workforce cuts are driven by factors like the impact of tariffs, overhiring during the Covid-19 pandemic and perhaps simple maximising of profits."

"You can say, We are integrating the newest technology into our business processes, so we are very much a technological frontrunner, and we have to let go of these people,' said Fabian Stephany, a departmental research lecturer at the Oxford Internet Institute."

"In 2025, AI was cited as a reason for more than 54,000 layoffs, according to a December report from the consulting firm Challenger, Gray & Christmas. In January, Amazon alone laid off 16,000 workers after making 14,000 reductions in October. Beth Galetti, senior vice-president of people experience and technology at Amazon, explained in an October memo that they were trimming staff because AI is the most transformative technology we've seen since the internet, and it's enabling companies to innovate much faster than ever before. We're convinced that we need to be organized more leanly, Galetti added."

Corporate leaders commonly attribute workforce reductions to artificial intelligence improving efficiency and replacing human roles. Some economists and technology analysts dispute those claims, pointing to alternative causes such as tariffs, overhiring during the Covid-19 pandemic, and profit-maximizing behavior. Major firms have invoked AI when announcing large cuts: Amazon reduced tens of thousands of positions, Hewlett-Packard linked AI to future productivity gains and potential headcount reductions, and Duolingo signaled moving contractor tasks to AI. A consulting report counted tens of thousands of AI-cited layoffs in 2025, while market research firms argue financial motives often explain the cuts.

Read at www.theguardian.com