Sam Altman warns companies are using AI washing to mask layoffs as job cuts surge

OpenAI's Sam Altman warns that firms are using 'AI washing' to mask layoffs across the globe -- AI boss calls out corporate excuses while warning of 'palpable' job disruption ahead

Some traditional layoffs are being blamed on AI, Altman believes Artificial intelligence is already proving to be a disruption to the workplace, with the scope depending on your industry, but OpenAI CEO Sam Altman believes that some of the damage isn't entirely the fault of AI firms. He raised his belief that so-called "AI washing," where AI is being falsely blamed for layoffs in some businesses, is being used as an excuse to reduce headcounts. In an interview with CNBC at the India AI Impact Summit this week (h/t Fortune), Altman explained that "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." Altman isn't oblivious to the impact that AI is having, however, but (as you might expect) he's a little more optimistic about the end result. "We'll find new kinds of jobs, as we do with every tech revolution," Altman went on to say, believing that "[he] would expect that the real impact of AI doing jobs in the next few years will begin to be palpable." His comments follow a recent National Bureau of Economic Research survey of executives that showed that, far from being ready to boost productivity for businesses, 80% of the executives queried found that AI wasn't having any impact on productivity or, indeed, on employment numbers. That's despite the warning calls from others in the AI space, including from Microsoft AI boss Mustafa Suleyman, who believes AI will be ready to replace white-collar jobs within 18 months. As for AI washing, the data seems to support Altman's view. A recent Yale Budget Lab report, using population survey data from the US Bureau of Labor Statistics, suggests that there hasn't been a significant change in occupation changes or in the average length of unemployment from ChatGPT's release up until November 25. If businesses are scrapping jobs because of AI, this data appears to suggest that it isn't happening on a grand scale just yet. A lot of money is resting on AI's success; however, with over $258 million of global venture capital invested in 2025 in the technology, and with businesses investing in AI needing to justify that investment. Regardless, Altman's comments are unlikely to offer much relief for those employed in the roles at most risk from AI, with uncertain waters ahead. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

Sam Altman Says Companies Are 'AI Washing' Layoffs

Sam Altman is starting to get the sneaking suspicion that companies might be using the technology he's dedicated his life to (once it turned out to be extremely profitable) as cover for their own interests. In an interview with CNBC-TV18 at the India AI Impact Summit, the founder and CEO of OpenAI suggested that AI has become a scapegoat that is wrongly being blamed for the mass layoffs that continue to hit basically every sector of the economy. "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," Altman said. Of course, Altman's gotta thread the needle here. He does, in fact, need people to believe his company's technology can replace peopleâ€"that has kinda become the whole pitch to corporations looking to pour money into AI (despite little real return on those investments thus far). But he also would rather not position his product as a job killer, lest he rile the masses who are on edge that their jobs might get axed. “We’ll find new kinds of jobs, as we do with every tech revolution,†he added. “But I would expect that the real impact of AI doing jobs in the next few years will begin to be palpable.†That said, Altman is probably onto something here. According to data from consulting firm Challenger, Gray & Christmas, about 55,000 layoffs in 2025 were attributed directly to AI. While that is a significant number of people out of work, it also accounted for less than 1% of all job losses for the year. A recent paper published by the National Bureau of Economic Research found that 90% of executives surveyed said AI has had no impact on workplace employment in the last three years. Despite this, there have been a number of instances where companies have pointed to AI as playing a role in layoffs, only to walk it back later. Amazon, for instance, cut 14,000 jobs in the spring while telling employees that the implementation of AI meant the company would “need fewer people doing some of the jobs that are being done today.†Cut to October, and the company was claiming AI wasn't the reason for the cuts. That sure seems to suggest that the company wants the public message to be that it's innovating, while the reality is that it's just downsizing. People are definitely losing their jobs. Employment has been sputtering at best and in a tailspin at worst. But it does seem likely that, at least for now, that has a lot more to do with economic factors beyond AI, no matter what companies may claim.

Even Sam Altman thinks CEOs are blaming AI for layoffs

As major employers have slashed jobs over the last year, many of them have cited artificial intelligence or automation to justify the cuts. AI was referenced in nearly 55,000 layoffs in 2025, according to outplacement firm Challenger, Gray & Christmas -- and the latest figures suggest that trend is continuing into this year alongside a record-high surge in job cuts, which crossed 108,000 in January alone. But economists and experts have repeatedly said that employment data does not indicate AI is replacing jobs en masse at the moment. And it seems even OpenAI CEO Sam Altman shares this skepticism over whether AI is actually responsible for the layoffs roiling the workforce. "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," Altman said in an interview during the AI Impact Summit in New Delhi this week. "I expect we'll see more of the latter over time." There are plenty of potential explanations for ongoing layoffs, from immigration policy to broader economic uncertainty, but business leaders have been quick to cite AI. Companies like Citigroup have claimed AI will "reshape how work gets done" and have alerted employees to additional layoffs in the coming months. UPS has cut tens of thousands of jobs over the last year, and CEO Carol Tomé claimed automation is a core part of the business becoming more efficient. Tech companies like Amazon and Microsoft have declared AI will revolutionize how they work, all the while trimming headcount under the guise of becoming leaner.