From Cisco to Block, more companies are pointing to AI when unveiling job cuts

NEW YORK (AP) 鈥� have been piling up recently, especially . And the words are accompanying more and more notices about the cuts.

That’s unnerving workers across sectors, with many fearing what the rapid adoption of AI will mean for their . Even if AI isn’t replacing people directly, some businesses have announced reductions to the technology or tout new ways to streamline operations 鈥� raising alarm about what might be left over for payrolls and future openings.

But corporate explanations are often very vague. AI is rarely the sole reason companies cite when taking layoffs, with most still pointing to wider corporate restructuring or macroeconomic headwinds. Some executives have also suggested that, while they鈥檙e making cuts to move around resources now, AI and its demand could open up new roles down the road. Still, it鈥檚 if that鈥檚 the real driver or just the message a business wants to tell Wall Street.

Regardless, here are some companies that have announced layoffs recently while at least nodding to the role of AI along the way.

Cisco

On Wednesday, Cisco Systems announced plans to cut under 4,000 jobs, or about 5% of its workforce. The announcement arrived the same day the tech giant for its third fiscal quarter, amid soaring demand for its AI tools and infrastructure.

CEO Chunk Robbins told employees in a memo that 鈥渢he companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment” 鈥� and that meant 鈥渕aking hard decisions.鈥� But he said Cisco would also help employees impacted by the cuts find new opportunities, 鈥渨hether internal or external.鈥�

Block

Financial services provider Block in February moved to of its 10,000 plus employees. And the parent of payment platforms like Square and Cash App was vocal about reconfiguring to capitalize on AI.

鈥淭he core thesis is simple. Intelligence tools have changed what it means to build and run a company,鈥� CEO Jack Dorsey said in a letter to shareholders at the time. 鈥淎 significantly smaller team, using the tools we鈥檙e building, can do more and do it better.”

Dow

Not only tech companies have pointed to AI when initiating layoffs. In January, chemicals maker Dow, Inc. announced plans to 鈥� as part of broader push to 鈥渟treamline鈥� operations. That included putting more emphasis on AI and automation.

Also in January, Pinterest said it would of its workforce as the company pivots more of its money to AI. The image-sharing platform said the cuts were part of broader 鈥渢ransformation initiatives鈥� 鈥� which included reallocating the company鈥檚 resources to AI-focused roles and prioritizing AI-powered products.

Lufthansa Group

Last fall, Lufthansa Group said it would shed 4,000 jobs by 2030 鈥� , digitalization and consolidating work among member airlines.

Cuts at Meta and other big names arrive amid broader AI ramp-up

While perhaps not explicitly mentioning or tying the technology to recent layoff announcements, a host of other big names 鈥� including and 鈥� are also cutting thousands of jobs while investing billions of dollars toward AI.

Meta, for example, plans to lay off about 8,000 workers, or about 10% of its workforce, starting next week. When announcing the cuts last month, the Facebook owner more broadly cited the need to offset certain investments and broader efficiency.

Still, the move arrives as Meta continues to ramp up spending on AI infrastructure and highly-paid AI expert hires. And earlier this year, CEO Mark Zuckerberg said , 鈥淎I starts to dramatically change the way that we work.鈥�

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