‘AI-washing’ rises as companies blame AI for layoffs: What to know

From Quartz.

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U.S. companies announced 108,435 job cuts in January 2026, the highest monthly total since 2009, signaling mounting business pressure. Challenger, Gray & Christmas reported a 205% jump in layoffs from December, underscoring U.S. layoffs January 2026 trends and job cuts data tracked by the firm. The report also surfaces debate over AI-washing, as some executives cite artificial intelligence while routine factors persist. Scott Dylan of NexaTech Ventures defines AI-washing as attributing layoffs to AI instead of business drivers. Only about 7,600 cuts cited AI; major reasons included contract losses, market conditions, and restructuring. Examples include UPS cutting 30,000 jobs after severing ties with Amazon, and Amazon’s leadership later pointing to over-hiring and excess management layers. Experts urge clearer attribution to maintain trust. #aiwashing #layoffs #corporatestrategy #transparency

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