AI Blamed for 21,000 Job Cuts in April as White House Denies Impact and Experts Suspect Corporate Cover-Up

Over 21,000 jobs were cut in April with AI cited as the cause for the second straight month, yet the White House denies any evidence of AI-driven job losses, while experts warn companies may be using AI as a cover story for pandemic-era overhiring mistakes — a deceptive trend dubbed 'AI washing.'

• Over 21,000 job cuts in April are being attributed to AI, marking the second consecutive month AI stands as the leading rationale for layoffs, yet White House National Economic Council Director Kevin Hassett insists there is 'no sign in the data' that AI has cost anyone their job.
• Conflicting research fuels uncertainty around AI's workforce impact, with an MIT study suggesting 11% of U.S. work hours can already be automated, a Gartner forecast predicting 50% of AI-related layoffs will result in rehiring, and a Harvard study finding AI actually expands work hours rather than reducing them.
• Many experts suspect companies are using AI as a cover story for layoffs driven by pandemic-era overhiring, with the true cause being corporate miscalculation rather than genuine AI-driven workforce transformation — a phenomenon being called 'AI washing.'