"But experts say many companies are "AI-washing" - using artificial intelligence to explain layoffs when the real reasons may be overhiring during the pandemic, missing financial targets, or avoiding criticism of other factors like tariffs. Wharton School professor Peter Cappelli said companies are anticipating that AI will take over jobs, but it hasn't happened yet. Brookings Institution researcher Molly Kinder called it an investor-friendly message that signals cutting-edge adoption rather than admitting the business is struggling."
"More than 50,000 workers lost their jobs to AI in 2025 - or so their employers claim. Amazon announced 16,000 corporate job cuts this week after CEO Andrew Jassy said generative AI should change how work is done. Pinterest said it would cut 15% of its workforce to reallocate resources to AI-focused roles. But experts say many companies are "AI-washing" - using artificial intelligence to explain layoffs"
Employers reported more than 50,000 job losses to AI in 2025, with Amazon cutting 16,000 corporate roles and Pinterest trimming 15% to shift toward AI-focused positions. Experts warn that many firms are using an "AI" explanation as cover, a practice labeled "AI-washing," while the underlying causes often include pandemic overhiring, missed financial targets, or external pressures such as tariffs. Wharton School professor Peter Cappelli noted that companies anticipate AI replacing jobs but that widespread displacement has not yet occurred. Brookings researcher Molly Kinder described the AI rationale as investor-friendly messaging that can obscure business struggles.
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