Scale AI CEO argues many companies are using AI as a cover story for routine workforce reductions rather than genuine restructuring.

Jason Droege, CEO of Scale AI, told Semafor that firms are 'washing the layoffs' by attributing ordinary business downsizing to AI-related changes.

Droege characterizes these layoffs as standard 'right-sizing' rather than legitimate AI-driven workforce adjustments.

The criticism suggests companies may be misleading stakeholders about the actual reasons behind employee cuts by framing them as AI-related necessities.