Updated on: February 3, 2026 / 5:47 PM EST / CBS News
When Pinterest and Dow announced layoffs last month, both cited a shift to artificial intelligence as part of the reason for cuts — a sign that some employers are increasingly pointing to AI as they trim payrolls.
Economists have largely downplayed generative AI’s current effects on the broader U.S. workforce, but that offers little comfort to workers suddenly out of jobs when companies highlight AI adoption. Outplacement firm Challenger, Gray and Christmas says that in 2025 companies explicitly tied AI to about 55,000 job cuts — more than 12 times the number attributed to AI two years earlier. About 51,000 of those losses were in tech, concentrated in states with heavy tech employment such as California and Washington.
After years of heavy AI investment aimed at boosting efficiency and productivity, companies face pressure to show returns, Challenger, Gray and Christmas’ chief revenue officer told CBS News. “That means jobs being replaced with artificial intelligence,” he said.
Amazon is among the big tech firms leaning into AI. In 2025 CEO Andy Jassy said he expected the company to shrink some white-collar headcount as it invests in AI “agents” to drive efficiency gains. Amazon announced a cut of 16,000 jobs in January, though its internal memo did not explicitly cite AI. Pinterest, by contrast, framed its January cuts — about 15% of its workforce — as a move to redirect resources toward expanding AI systems and hiring AI-proficient talent.
Other employers don’t always mention AI explicitly when announcing layoffs, but often note ramped-up use of technology and automation.
A convenient excuse?
The wave of announcements comes as economists try to gauge how AI will reshape employment — a moving target as AI use spreads. Ben May, director of global macro research at Oxford Economics, said while some roles are exposed to AI, most firms don’t yet appear to be systematically replacing large numbers of workers with it. He also suggested that some companies may be using AI as a softer rationale for cuts. “We suspect some firms are trying to dress up layoffs as a good news story rather than a bad one — for example, by pointing to technological change instead of past overhiring,” he said.
Lisa Simon, chief economist at Revelio Labs, which analyzes labor-market data, suspects some firms are using AI to rationalize head-count reductions. “Companies want to get rid of departments that no longer serve them,” she said. “And I think, for now, AI is a little bit of a front and an excuse.” She added that AI may be affecting hiring decisions more than current layoffs, as employers realize they can do more with fewer new hires.
Challenger expects AI-related layoff notices to continue. “This technological innovation, I think, it’s going to affect pretty much every industry,” the firm’s chief revenue officer said.
Companies that have announced AI-related cuts
– Pinterest: In January announced plans to cut about 15% of its workforce to focus on an “AI-forward strategy,” saying it will hire AI-proficient talent.
– Dow: A U.S. chemical and plastics maker said it would eliminate roughly 4,500 jobs as it steps up AI and automation.
– Indeed and Glassdoor (Recruit Holdings): Announced roughly 1,300 total job cuts; Recruit’s CEO said “AI is changing the world” and the company must adapt.
– Chegg: In October 2025 said it would eliminate about 45% of its workforce, citing the “new realities of AI” and reduced traffic from Google.
– CrowdStrike: CEO George Kurtz said the cybersecurity firm would cut about 500 positions as it leans into AI to address changing threats and customer needs.
– HP: In November 2025 said it expected to reduce global headcount by 4,000 to 6,000 as part of efforts to increase productivity through AI, targeting $1 billion in savings by the end of fiscal 2028.
– Workday: In February 2025 said it would eliminate roughly 1,750 jobs; CEO Carl Eschenbach cited AI as a factor in restructuring to align resources with changing customer needs.
– Amazon: CEO Andy Jassy has said AI investments will reduce the need for some white-collar roles; the company announced 16,000 job cuts in January but did not explicitly cite AI in its employee memo.
Edited by Alain Sherter