AI layoffs or ‘AI-washing’? | TechCrunch
Topics
Latest
AI
Amazon
Apps
Biotech & Health
Climate
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
Fundraising
Gadgets
Gaming
Google
Government & Policy
Hardware
Instagram
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
Security
Social
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
Staff
Events
Startup Battlefield
StrictlyVC
Newsletters
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Posted:
AI layoffs or ‘AI-washing’?
How many of the companies with recent layoffs are truly adapting their workforces to the efficiencies and challenges of artificial intelligence? And how many of them were just using AI as an excuse to cover other problems?
That’s the question posed by a New York Times article on the trend of “AI-washing,” where companies will cite AI as the reason for layoffs that might actually be caused by other factors, like over-hiring during the pandemic.
AI was the stated reason for more than 50,000 layoffs in 2025, with Amazon and Pinterest among the tech companies who blamed the technology for recent cuts.
But a Forrester report published in January argued, “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.”
Molly Kinder, a senior research fellow at the Brookings Institute, noted that saying layoffs were caused by AI is a “very investor-friendly message,” especially when the alternative might mean admitting, “The business is ailing.”
Topics
Tickets are live at the lowest rates of the year. Save up to $680 on your pass now.Meet investors. Discover your next portfolio company. Hear from 250+ tech leaders, dive into 200+ sessions, and explore 300+ startups building what’s next. Don’t miss these one-time savings.
Newsletters
Subscribe for the industry’s biggest tech news
Every weekday and Sunday, you can get the best of TechCrunch’s coverage.
TechCrunch Mobility is your destination for transportation news and insight.
Startups are the core of TechCrunch, so get our best coverage delivered weekly.
Provides movers and shakers with the info they need to start their day.
By submitting your email, you agree to our Terms and Privacy Notice.
Related
Why Tether’s CEO is everywhere right now
Amazon’s ‘Melania’ documentary makes $7M on opening weekend
Indonesia ‘conditionally’ lifts ban on Grok
Latest in AI
AI layoffs or ‘AI-washing’?
Why Tether’s CEO is everywhere right now
Indonesia ‘conditionally’ lifts ban on Grok
© 2025 TechCrunch Media LLC.