Since the introduction of a new requirement last March, New York state has mandated that companies disclose if “technological innovation or automation” led to job losses. However, out of more than 160 companies that issued mass layoff notices, none have cited AI as a cause. This group includes major firms such as Amazon and Goldman Sachs, both known for integrating AI tools into their operations.
The option to list technology-related layoffs was added to Worker Adjustment and Retraining Notification (WARN) filings—a form that companies with 50 or more employees must submit to inform the state about significant job losses. As of January, the New York Department of Labor confirmed that no employer had attributed layoffs to technology.
While many businesses have embraced AI to handle repetitive tasks like customer service and accounting, admitting to replacing human workers with AI could tarnish their reputations. This complicates efforts to trace layoffs back to technological advancements, especially since companies can take considerable time to restructure around new technologies.
To understand the situation better, New York Governor Kathy Hochul mandated that questions about AI-induced layoffs be integrated into WARN filings, making New York the first state to include such a provision. Companies have the option to select from a list of 17 reasons for layoffs, which includes “bankruptcy” and “merger,” alongside technological causes. If a company identifies tech as a reason, they must specify the technology involved.
Despite the rollout of this new requirement, the filings indicate a reluctance to associate layoffs with AI. So far, 750 WARN notices affecting nearly 28,300 employees have been filed without mentioning AI as a factor. This may imply companies are avoiding the question of AI altogether or that technological disruption has not yet significantly impacted workforce trends.
Some of the companies that reported layoffs, such as caterers and retailers, are not typically associated with roles that AI could easily replace. However, large corporations like Goldman Sachs and Amazon have cited different reasons for their layoffs. Goldman Sachs, for instance, linked significant layoffs to productivity gains from AI, while Amazon attributed layoffs to previous overhiring during the pandemic.
Despite the broader conversations around job cuts due to AI, New York’s findings show a significant gap in attributing these layoffs to technology, which raises questions about the immediate implications of AI on jobs. According to Amazon, a spokesperson explained that their layoffs are mainly driven by a need to streamline operations and reduce bureaucratic layers rather than AI directly causing job losses.
To ensure compliance, the New York Department of Labor follows up on WARN filings and ensures that filings accurately reflect the reasons for layoffs. Missing this requirement can lead to financial penalties.
Labor leaders have expressed support for Hochul’s initiative as a step towards recognizing the impact of AI on jobs, calling for better regulations and accountability. Proposed bills aim to broaden the reporting of AI-related job losses, suggesting that larger companies provide estimates on how many positions are unfilled due to increasing AI usage.
As discussions continue about the influence of AI in the workplace, experts recommend that companies be transparent about how technology is transforming their workforce. This transparency could help provide necessary data to guide workers in adapting to a changing job landscape.
