Is ‘AI-washing’ behind new wave of tech layoffs?

In 2025, the tech industry is experiencing a significant shift, with over 50,000 layoffs attributed to AI advancements. Companies like Amazon, Pinterest, and HP are at the forefront, citing upcoming AI-driven changes as a primary reason for workforce reductions. This trend has sparked debate, with some questioning whether these layoffs are genuinely a response to technological evolution or if "AI-washing" is at play—a term used to describe the superficial use of AI as a justification for business decisions. Critics argue that AI-washing might be masking deeper issues within these companies. They suggest that firms could be using AI as a convenient scapegoat to streamline operations, cut costs, and boost stock prices, rather than truly investing in AI-driven innovation. This skepticism is fueled by a lack of transparency in how AI will be implemented and the potential benefits it might bring, leaving employees and industry analysts demanding clearer communication from these corporations. On the other hand, proponents of these layoffs argue that AI's rapid advancement necessitates a reevaluation of current workforce needs. They contend that as AI takes on more routine tasks, companies must adapt to remain competitive, which could include reskilling remaining employees for more AI-centric roles. As the debate continues, the tech industry faces mounting pressure to balance innovation with ethical responsibility, ensuring that AI's promise does not overshadow the human element in the workplace.

— Authored by Next24 Live