Did artificial intelligence really drive layoffs at Amazon and other firms? It can be hard to tell

Associated Press (AP)CenterEN 6 min read 100% complete by By MATT O’BRIENFebruary 2, 2026 at 09:23 AM

AI Summary

long article 6 min

The article explores the difficulty in determining whether artificial intelligence is the true driver behind recent layoffs at companies like Amazon, Expedia, Pinterest, and Dow. Amazon, which laid off 16,000 corporate employees, cited efficiency gains from AI as a factor, but it's unclear if this is the primary reason or a message to attract investors. N. Lee Plumb, an Amazon employee laid off despite being a top user of the company's AI coding tools, suggests that attributing layoffs to AI can boost a company's stock price. Economists and employees find it challenging to verify if AI is the real cause or if companies are using it as a narrative to demonstrate efficiency and attract capital.

Key Entities & Roles

Key Player Opposition Context

Microsoft 40% Nestle 40% Procter & Gamble 40% Target 40% Lufthansa Group 40% UPS 40% ConocoPhillips 40% Intel 40% Texas 50% Andy Jassy 60% N. Lee Plumb ×580% Amazon ×890%

Keywords

artificial intelligence 100% layoffs 90% amazon 80% efficiency gains 70% return on investment 60% ai enablement 50% corporate workforce 50% wall street 40%