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

U.S. companies are in serious cutback mode to start 2026. According to data from Challenger, Gray & Christmas, U.S. company layoffs rose 205% from December 2025 to January 2026. While many companies have pointed the icy finger of blame at AI for recent layoffs, some observers are beginning to wonder whether executives are using the technology as an excuse to mask other internal issues that reflect poorly on the company and its leadership. Management gurus say that it’s a phenomenon known as “AI-washing", ...