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.
While AI is having an impact on the workplace, experts suggest tariffs, overhiring during the pandemic and simply maximising profits may be bigger factors
In short, the CEOs are allegedly engaged in “AI-washing”.
“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.
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