Economic Glance
Over the last year, US corporate leaders have often explained layoffs by saying the positions were no longer needed because artificial intelligence had made their companies more efficient, replacing humans with computers.
But some economists and technology analysts have expressed skepticism about such justifications and instead think that such workforce cuts are driven by factors like the impact of tariffs, overhiring during the Covid-19 pandemic and perhaps simple maximising of profits.
While AI is having an impact on the workplace, experts suggest tariffs, overhiring during the pandemic and simply maximising profits may be bigger factors
In short, the CEOs are allegedly engaged in “AI-washing”.
“You can say, ‘We are integrating the newest technology into our business processes, so we are very much a technological frontrunner, and we have to let go of these people,’” said Fabian Stephany, a departmental research lecturer at the Oxford Internet Institute.
In 2025, AI was cited as a reason for more than 54,000 layoffs, according to a December report from the consulting firm Challenger, Gray & Christmas.
In January, Amazon alone laid off 16,000 workers after making 14,000 reductions in October.
United Parcel Service on Tuesday said it would cut up to 30,000 operational roles in 2026, adding to last year’s job reductions as the delivery giant looks to accelerate a turnaround fueled by a pivot to higher-margin shipments.
Nearly 400 millionaires and billionaires from 24 countries are calling on global leaders to increase taxes on the super-rich, amid growing concern that the wealthiest in society are buying political influence.
There is a new deadline for U.S. importers to file for electronic refunds if the Supreme Court rules President Donald Trump’s IEEPA tariffs are illegal.
