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More than 160 companies operating in New York state have submitted notices of mass layoffs since March last year, yet none cited artificial intelligence or automation as the cause of workforce reductions, according to state labor data.
The filings, submitted under Worker Adjustment and Retraining Notification (WARN) requirements, included major employers such as Amazon, Goldman Sachs, and Morgan Stanley. All three companies have discussed adopting AI tools, but none selected “technological innovation or automation” as the reason for layoffs in required state paperwork.
New York added the technology category to WARN reporting requirements 11 months ago after Governor Kathy Hochul directed the state Department of Labor to track whether AI is driving job losses. Legal experts say the state is the first in the US to include such an option.
As of the end of January, the Department of Labor confirmed that no employer had selected the technology category when reporting workforce reductions.
WARN filings and AI layoffs data
More than 750 WARN notices filed by 162 employers have affected nearly 28,300 workers since the reporting change took effect. The filings allow companies to select multiple explanations from a list of 17 reasons, including bankruptcy, merger, relocation, and economic conditions.
If an employer selects the technology option, the state requires additional details about the systems replacing workers, such as AI, robotics, or software modernization.
The absence of AI-related filings comes as companies increasingly promote the use of automation for repetitive functions including customer service, accounting, and sales support. Economists note that tracing layoffs directly to new technologies can be difficult because organizational restructuring tied to innovation can take years.
Some of the largest workforce reductions reported in New York came from financial services and technology employers. Goldman Sachs reported layoffs or location closures affecting more than 4,100 workers. Amazon reported 660 affected employees, while Morgan Stanley reported 260 job losses.
Internally, Goldman Sachs linked layoffs to AI’s potential to deliver productivity gains. Amazon previously warned that benefits from AI adoption could lead to job cuts affecting about 30,000 workers globally. Bloomberg reported that a small portion of Morgan Stanley layoffs reflected automation use, though those reductions may have occurred outside New York.
Amazon spokesperson Kelly Nantel said: “AI is not the reason behind the vast majority” of cuts and that instead the goal is “reducing layers, increasing ownership, and helping reduce bureaucracy.”
According to Challenger, Gray & Christmas, nearly 55,000 US companies attributed job cuts to AI adoption last year in public statements.
Regulation and workforce transparency
WARN filings are designed to give state agencies advance notice of layoffs so support services can be prepared for displaced workers. Employers face daily fines of $500 for failing to comply with reporting requirements.
Kristin Devoe, spokesperson for Governor Hochul, said the Department of Labor reviews filings to ensure accuracy. She said Amazon listed “economic” conditions as the reason for layoffs tied to workers hired during pandemic-era ecommerce demand.
“The data collected through WARN notices, including the reason for layoff, serves as a valuable indicator of shifts in the labor market,” Devoe said. “Gathering these early indicators allows the state to identify workforce trends and upskill workers who may need retraining to make their skills more compatible with today’s changing economy.”
She added that employers must answer WARN questions “frankly and honestly so New York State can support displaced workers to the greatest extent possible.”
Call for more reporting
Labor organizations are calling for expanded reporting requirements. Mario Cilento, president of the New York State AFL-CIO, said: “We must establish specific regulations that mandate employer accountability and transparency in AI deployment and ensure employers comply.”
State Assembly Labor Committee chair Harry Bronson has introduced legislation that would require companies with more than 100 employees to estimate unfilled roles linked to AI use and report changes in employee hours tied to automation. A separate proposal would extend reporting requirements to more businesses and link compliance to eligibility for state grants and tax incentives.
Erica Groshen, a labor economist at Cornell University, said employers may struggle to attribute job losses to new technologies. She believes a stronger approach would involve sharing detailed workforce data with labor agencies.
“Frankly, do we really care if someone is displaced by AI, or just the normal competitive marketplace?” Groshen asked. What lawmakers ought to do is “give people the information they need to make the right transitions.”
