How many of the companies with recent layoffs are just using AI as an excuse?

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Companies cited AI as the reason for over 50,000 layoffs in 2025, but a Forrester report suggests many are engaging in 'AI-washing' - blaming AI for cuts actually driven by financial pressures or pandemic over-hiring. Research indicates most companies announcing AI-related layoffs lack mature AI applications ready to replace those roles, using AI as an investor-friendly excuse rather than admitting business struggles.

AI layoffs or ‘AI-washing’?

The year is now 2030, Amazon just laid off half of their work force because of pandemic hiring in 2020.

Yes just like pandemic-washing in 2020, subprimes-washing in 2008 etc…

Blaming layoffs on AI is a smart PR move by companies. It’s rough for employees, but the stated reason rarely matters to those who lose their jobs since the outcome is the same.
Framing cuts as “AI-driven efficiency” signals that the company is on the bleeding edge of tech integration, streamlining operations, doing more with less, and lowering costs, exactly what shareholders want to hear. Because them saying: “We misjudged demand, made bad assumptions, over hired, and now margins are under pressure. but rest assured we’re trying to figure it out as we go, just with a multi-billion-dollar balance sheet and people’s livelihood on the line.” doesn’t hit he same for Investor confidence.
The bigger issue, in my view, is the downstream effect on hiring. Smaller companies are pulling back because they believe AI is only months away from replacing large chunks of work. They can absorb missed deadlines and overworked teams far longer than workers can absorb lost income. The result is fewer job opportunities long before AI actually delivers on the hype.
disclaimer: No LLMs were harmed in the creation of this comment