new york – Layoffs have been on the rise lately, especially in the technology industry. And more and more notices of cuts are coming along with the word “artificial intelligence.”
This is upsetting workers across all sectors, with many concerned about what the rapid adoption of AI will mean for their employment prospects. Even if AI won’t directly replace humans, some companies have announced cuts as they shift funding to technology and tout new ways to streamline operations, raising alarms about what may remain in pay and future job openings.
However, explanations provided by companies are often very vague. Companies rarely cite AI alone as a reason for layoffs, and many still cite large-scale corporate restructuring or macroeconomic headwinds. Some executives have suggested that although they are currently reducing the movement of resources, AI and its demands could create new roles in the future. Still, it’s hard to know whether that’s the real driver or a message companies want to send to Wall Street.
Regardless, here are some companies that have recently announced layoffs while at least nodding to AI’s role in the process.
Cisco
Cisco Systems on Wednesday announced plans to cut fewer than 4,000 jobs, about 5% of its workforce. The announcement came on the same day the tech giant announced record third-quarter earnings as demand for AI tools and infrastructure soars.
“Companies that win in the AI era will be those with focus, urgency, and the discipline to continually redirect their investments,” CEO Chunk Robbins told employees in a memo. This means “making difficult decisions.” But he said Cisco will also help employees affected by the layoffs find new opportunities “both internally and externally.”
block
Financial services provider Block took action in February to lay off more than 4,000 of its more than 10,000 employees. And the parent companies of payment platforms like Square and Cash App have been vocal about reconfiguring them to take advantage of AI.
“The core theme is simple: Intelligence tools have changed what it means to start and run a company,” CEO Jack Dorsey said in a letter to shareholders at the time. “The tools we’re building will allow even much smaller teams to do more and do better.”
Dow
Tech companies aren’t the only ones pointing to AI as they begin to cut staff. In January, chemical maker Dow announced plans to cut about 4,500 jobs as part of a broader drive to “streamline” its operations. This included a greater emphasis on AI and automation.
Pinterest also announced in January that it would lay off less than 15% of its employees to direct more of its funding to AI. The image-sharing platform said the job cuts are part of a broader “transformation initiative” that includes reallocating internal resources to AI-focused roles and prioritizing AI-powered products.
Lufthansa Group
Last fall, Lufthansa Group announced that it would cut 4,000 jobs by 2030, pointing to the introduction of AI, digitization and the integration of operations between its member airlines.
Cuts for Meta and other big players amid broader AI ramp-up
Although they probably won’t explicitly mention this technology or link it to recent job-reduction announcements, many other major companies, including Meta, Microsoft, and Amazon, are also cutting thousands of jobs while investing billions in AI.
Meta, for example, plans to lay off about 8,000 people, or about 10% of its workforce, starting next week. When announcing the layoffs last month, Facebook’s owner more broadly cited the need to offset specific investments with broader efficiencies.
Still, the move comes as Meta continues to increase spending on AI infrastructure and hiring highly paid AI professionals. And earlier this year, CEO Mark Zuckerberg said that in 2026, “AI will begin to dramatically change the way we work.”
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