AI-washing masks real motives behind 50,000+ layoffs in 2025. Discover how companies use AI as a scapegoat—and what it means for workers.
Matilda
AI Layoffs Or ‘AI-Washing’?
When companies slashed more than 50,000 jobs in 2025 while citing artificial intelligence as the cause, a quiet skepticism emerged among workforce analysts. What exactly is AI-washing? It's the growing practice of blaming AI-driven automation for layoffs actually rooted in over-hiring, cost-cutting, or strategic pivots. As enterprises race to appear innovative, the line between genuine transformation and convenient excuse has blurred—leaving employees and investors questioning corporate honesty. Credit: J Studios / Getty Images The AI Excuse Goes Mainstream Throughout 2025, major tech firms consistently pointed to AI when announcing workforce reductions. Public statements emphasized "strategic realignment" around artificial intelligence, suggesting human roles were becoming obsolete overnight. Yet internal roadmaps told a different story. Many organizations lacked production-ready AI systems capable of performing the tasks handled by departing employees. This disconnect matt…
