More companies are pointing to AI as they lay off employees
Companies like Pinterest and Dow attributed layoffs to a shift to artificial intelligence, with 55,000 job cuts in 2025 directly linked to AI adoption. Economists question whether companies are using AI as a pretext for layoffs or if it's genuinely driving job losses.
Companies are increasingly attributing layoffs to artificial intelligence. In 2025, 55,000 job cuts were directly linked to AI adoption, a significant increase from two years prior. Most of these losses were in the tech sector, particularly in California and Washington. Amazon, Pinterest, and Dow are among the companies that have cited AI in their layoff announcements. Economists are divided on whether AI is driving job losses or being used as a pretext. Some suspect companies are using AI as an excuse to rationalize layoffs, while others expect AI-related job cuts to continue.
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