Artificial Intelligence Layoffs or 'AI-Washing'?
Companies citing artificial intelligence as a reason for layoffs have sparked a new debate in the industry called 'AI-washing.' Experts are questioning whether financial reasons lie behind these announcements.
Is Artificial Intelligence One of the Reasons for Layoffs?
In the wave of layoffs experienced in the technology world in 2025, artificial intelligence was frequently cited as one of the reasons. Including giant companies like Amazon and Pinterest, over 50,000 job losses were officially attributed to artificial intelligence. However, there are serious doubts about the reality and transparency of these explanations.
'AI-Washing' Trend and Criticisms
A report published by the research company Forrester in January defined this situation as 'AI-washing'. According to the report, many companies attributing layoffs to artificial intelligence do not yet have mature and tested AI applications ready to fill these roles. This situation means that cuts made for financial reasons are being linked to the future technology adaptation process.
Senior researcher Molly Kinder from the Brookings Institution stated that presenting artificial intelligence as a reason for layoffs is an 'investor-friendly message'. Kinder expressed that the alternative could mean 'admitting that business is going poorly'.
Pandemic Era Employment and the Overall Picture
As also pointed out by The New York Times, other factors, such as the excessive employment increase during the pandemic period, could be the real reason for the layoffs. In 2025, a total of 1.17 million job losses occurred in the US technology sector alone. Since many companies like Shopify, Expedia, and Vimeo did not disclose the number of affected jobs, the real figure is likely to be higher.
These developments are fueling debates about the impact of artificial intelligence on workforce efficiency and how companies are managing this process. While AI investments continue unabated, how the business world will manage this transformation and what kind of future it will offer employees emerges as an important question. Similarly, the investment strategies of technology giants are also being closely followed. For example, it is known that Oracle plans to raise $50 billion for cloud investments by 2026.
