AI Layoffs in New York: Companies Avoid Admitting Automation as Reason for Job Cuts

Over 160 companies in New York state have filed notices of mass layoffs since last March, yet none have attributed their workforce reductions to “technological innovation or automation,” despite widespread adoption of AI tools across industries.

The option to cite AI as a reason for layoffs was added to New York’s Worker Adjustment and Retraining Notification (WARN) filings 11 months ago, making New York the first state to require companies to disclose whether artificial intelligence played a role in their workforce reductions. However, according to data from the New York Department of Labor, not a single employer has selected this option in the required paperwork.

This revelation comes as major corporations publicly tout their AI implementations while simultaneously conducting significant layoffs. Amazon, Goldman Sachs, and Morgan Stanley—all prominent AI adopters—have been among the top filers for workforce reductions in the state, yet they’ve cited traditional reasons like “economic” factors, “mergers,” or “relocation” instead of technological automation.

Goldman Sachs led the way with over 4,100 workers affected by layoffs or location closures, while Amazon impacted 660 workers and Morgan Stanley reported 260 job losses. Internally, however, these companies have been more transparent about AI’s role. Goldman Sachs has linked its layoffs to AI’s potential for productivity gains, while Amazon warned that AI benefits would lead to job cuts affecting approximately 30,000 workers globally.

The disconnect between internal acknowledgments and public disclosures raises questions about corporate transparency and the true impact of AI on employment. Companies may be avoiding the AI attribution due to reputational concerns, as publicly linking job cuts to automation could damage their public image and potentially lead to regulatory scrutiny.

Economists face inherent challenges in tracing layoffs directly to technological advancements, as companies often take decades to fully reorganize around new technologies. The current data from New York’s WARN filings suggests that either companies are deliberately avoiding the AI question or that traditional economic factors still dominate workforce reduction decisions.

The situation highlights the broader challenge facing workers and policymakers: determining the actual impact of AI on job security. While some companies celebrate offloading repetitive tasks like customer service, sales, and accounting to AI systems, the reluctance to formally acknowledge AI’s role in layoffs creates a transparency gap that makes it difficult to assess the technology’s true employment impact.

As AI continues to evolve and integrate into business operations, the question “Is AI going to take my job?” remains difficult to answer definitively. The New York data suggests that while AI adoption is widespread, its direct attribution to job losses remains elusive in official records.

Tags:

AI layoffs, automation job cuts, New York WARN filings, corporate transparency, artificial intelligence employment, workforce reduction, tech-driven layoffs, AI job displacement, WARN Act, employment technology

Viral Phrases:

“AI is not the reason behind the vast majority of cuts” – Amazon spokesperson
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“Reducing layers, increasing ownership, and helping reduce bureaucracy”
“Technological innovation or automation”
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“The first state to require companies to disclose AI-driven layoffs”
“Reputational harm from admitting AI layoffs”
“Transparency gap in AI employment impact”
“Decades to fully reorganize around new technologies”

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