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 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 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.
