US companies accused of 'AI washing' re: job losses
4 hours ago
- #Economic Skepticism
- #Corporate Layoffs
- #AI-washing
- US corporate leaders attribute layoffs to AI increasing efficiency, replacing human jobs.
- Economists and analysts are skeptical, citing tariffs, pandemic overhiring, and profit maximization as real reasons.
- The term 'AI-washing' describes companies using AI as a scapegoat for layoffs.
- In 2025, AI was cited for over 54,000 layoffs, with Amazon cutting 30,000 jobs.
- Amazon and HP executives claim AI boosts productivity, justifying workforce reductions.
- Forrester reports only 6% of US jobs will be automated by 2030, questioning AI's role in layoffs.
- Experts warn against premature layoffs based on AI's unproven capabilities in most occupations.
- CEOs may blame AI to avoid backlash over tariffs or pandemic-era overhiring.
- Salesforce's CEO reduced staff citing AI agents, but researchers urge scrutiny of such claims.
- Amazon and Duolingo later contradicted initial AI-driven layoff narratives, citing culture or contractor adjustments.
- A laid-off Amazon employee believes cost-cutting, not AI, was the real reason for her termination.