Why AI Headlines Shouldn’t Scare CS Students: AI-Washing and the Reality of Tech Layoffs

market
Author

Oppkey Staff

Published

February 3, 2026

The NY Times recently published an article on A.I. Washing. Companies are increasingly pointing to artificial intelligence as a reason for cutting jobs — even when the real causes may include overhiring, shifting markets, or financial pressure.

The article highlights that more than 50,000 layoffs in 2025 have cited AI as a factor. Major companies like Amazon, Pinterest, and HP have all pointed to AI-driven restructuring when announcing job cuts. But researchers and economists are skeptical of how much AI is actually responsible right now. Forrester notes that when clients say they are replacing staff with AI, nine out of 10 have no mature AI solution in place — suggesting many cuts are financially driven with AI as a scapegoat.

Some experts call this trend “AI-washing” — framing financially motivated layoffs as a forward-looking AI strategy. It’s an investor-friendly message: We’re modernizing, we’re efficient, we’re future-ready.

Research from the Yale Budget Lab suggests AI has not yet meaningfully shifted the overall job market.

Much of the tech-sector job loss since 2022 appears to be a correction after massive pandemic-era overhiring — not a wave of automation replacing engineers.

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