From Cisco to Block, more companies are pointing to AI when unveiling
job cuts
[May 15, 2026]
NEW YORK (AP) — Layoffs have been piling up recently, especially in the
tech world. And the words “artificial intelligence” 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 job prospects. Even if AI isn't
replacing people directly, some businesses have announced reductions as
they redirect money to the technology or tout new ways to streamline
operations — 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’re making cuts to move
around resources now, AI and its demand could open up new roles down the
road. Still, it’s hard to know if that’s 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 unveiled record revenue for its third fiscal quarter, amid
soaring demand for its AI tools and infrastructure.
CEO Chunk Robbins told employees in a memo that “the companies that will
win in the AI era will be those with focus, urgency, and the discipline
to continuously shift investment" — and that meant “making hard
decisions.” But he said Cisco would also help employees impacted by the
cuts find new opportunities, “whether internal or external."
Block
Financial services provider Block in February moved to lay off more than
4,000 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.
“The core thesis is simple. Intelligence tools have changed what it
means to build and run a company,” CEO Jack Dorsey said in a letter to
shareholders at the time. “A significantly smaller team, using the tools
we’re building, can do more and do it better."
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Cisco logo is seen at the Mobile World Congress 2023 in Barcelona,
Spain, March 2, 2023. (AP Photo/Joan Mateu Parra, File)
 Dow
Not only tech companies have pointed to AI when initiating layoffs.
In January, chemicals maker Dow, Inc. announced plans to cut about
4,500 jobs — as part of broader push to “streamline” operations.
That included putting more emphasis on AI and automation.
Pinterest
Also in January, Pinterest said it would lay off under 15% of its
workforce as the company pivots more of its money to AI. The
image-sharing platform said the cuts were part of broader
“transformation initiatives” — which included reallocating the
company’s 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 —
pointing to the adoption of AI, 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 — including
Meta, Microsoft and Amazon — 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 2026 will be when, “AI starts to
dramatically change the way that we work.”
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