Companies Blame AI for 54,000 Layoffs as Economists Call It 'AI Washing' to Hide Real Financial Motives

Feb 09, 2026
the Guardian
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Summary

Major US companies including Amazon and HP blame artificial intelligence for over 54,000 layoffs in 2025, but economists expose this as 'AI washing' - a deceptive tactic to hide the real culprits of tariffs, pandemic overhiring, and profit maximization behind tech-savvy excuses.

Key Points

  • US companies face accusations of 'AI washing' as they cite artificial intelligence for over 54,000 layoffs in 2025, with Amazon cutting 16,000 jobs and HP planning 6,000 cuts while blaming AI efficiency
  • Economists argue the real drivers behind workforce reductions are tariffs, pandemic overhiring, and profit maximization, noting that only 6% of US jobs are projected to be automated by 2030
  • Companies benefit from blaming AI rather than acknowledging financial motivations or Trump administration tariff impacts, as executives later backtrack on AI claims with Amazon's CEO calling cuts 'culture-driven' instead

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