At the India AI Impact Summit, Sam Altman, CEO of OpenAI, expressed concerns about how companies may use artificial intelligence as an excuse for layoffs. He highlighted the trend of "AI washing," where businesses attribute job losses to AI advancements while continuing to execute layoffs unrelated to technology. Altman noted that while AI is indeed displacing some jobs, the actual impact on employment is more nuanced.
According to a report by consulting firm Challenger, Gray & Christmas, approximately 55,000 layoffs in 2025 were linked to AI, representing less than 1% of total job losses that year. Additionally, a study from the National Bureau of Economic Research revealed that 90% of executives reported no noticeable effects of AI on employment over the past three years. This disconnect has led to instances where companies initially cited AI as a factor in job cuts but later retracted those statements.
For example, Amazon announced a reduction of 14,000 positions, initially claiming that AI would diminish the need for certain roles. However, by October, the company shifted its narrative, stating that AI was not responsible for the layoffs. This suggests a desire to maintain a positive public image while addressing operational downsizing.