Major layoffs have dominated headlines of the tech world since the start of 2026 as artificial intelligence becomes more prominent. A big question emerges. Is AI really driving this wave of job cuts? Or is there more to this story?
The Rise of “AI Washing”
And amid job cuts, a new term is now gaining attention: AI washing. It’s when companies highlight or exaggerate the role of AI to appear more advanced or to justify tough decisions. It becomes a narrative not always backed by reality.
Now, here’s where it connects to layoffs and job cuts rise. Many companies point to AI as the reason, saying that automation is replacing roles. But experts claim that is only part of the story. The bigger picture includes cost cutting, restructuring, and slowing demand. In some cases, companies are correcting over hiring from previous years.
Just look at the numbers:
- In the first quarter of this year, 86 tech companies have laid off more than 80,000 employees.
- In 2025, 103 companies slashed around 30,000 jobs.
- That makes the 2026 numbers as the highest layoff count in three years.
AI: A Cause or a Convenient Scapegoat?
The idea that AI is to be blamed has not come from thin air. CEOs are actively citing AI as a cause. In March, AI accounted for 25% of job cuts in the US and in 2026, it’s linked to 13% of layoffs so far.
In some cases, it may become a convenient scapegoat, making bosses somehow seem less responsible for the cutbacks. Yes, AI is transforming industries, and some roles are being automated, but not at the scale often claimed. So, is AI replacing jobs or simply being used to explain the cuts?
Even industry leaders are raising concerns. In February, OpenAI CEO Sam Altman raised the concerns during an AI summit in India’s New Delhi. He claims some companies are indeed AI washing.
OpenAI CEO Sam Altman – “I don’t know what the exact percentage is, but there’s some AI washing where people are blaming AI for layoffs that they would otherwise do, And then there’s some real displacement by AI of different kinds of jobs.”
The 2026 Big Tech Layoff Wave
Despite this, layoffs are continuing across big tech. Here is a look at the ongoing cuts:
- Meta: On April 23rd, Meta announced an internal meeting that it planned to lay off 10% of its staff in May.
- Microsoft: That same day, Microsoft sent workers an internal memo that offered voluntary buyouts. Around 7% of its employees are eligible for the program.
- Cognizant: Meanwhile, Cognizant is preparing fresh cuts with around 4,000 jobs at risk. The move comes alongside its project leap focus on expanding AI and digital capabilities.
- Oracle: Oracle has also announced between 20,000 and 30,000 job cuts globally.
- The List Continues: Amazon, Nike, Tata Consultancy Services, Cisco, Atlassian, Eventbrite, Quora, and Spotify have all announced layoffs in 2026.
Reality vs. Narrative
So, AI washing is gaining attraction as the data on AI’s impact remains unclear. Is the technology already displacing human jobs, or is its impact being overstated? As companies continue to cite AI amid rising layoffs, the line between reality and narrative appears to be growing thinner.
