From Cisco to Block, more companies are pointing to AI when unveiling job cuts
NEW YORK (AP) — layoffs It’s been piling up especially lately in the world of technology. And words “artificial intelligence” accompanied by more and more announcements of cuts.
This is frustrating employees across industries, and many fear what the rapid adoption of AI will mean for workers. job opportunities. Even if AI isn’t directly replacing humans, some businesses have announced reductions while diverting money Turn to technology or brag about new ways to streamline operations, sounding the alarm about what may be left for payrolls and future job openings.
But corporate disclosures are often very vague. AI is rarely the only reason companies give when making layoffs, and most still point to broader corporate restructuring or macroeconomic headwinds. While some executives are currently making cuts to make changes to resources, they also suggested that AI and its demand could open up new roles in the future. Again it’s hard to know Is this the real driving force, or is it just a message a business wants to send to Wall Street?
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Companies are restructuring to shift investments into AI and related growth areas. This strategic pivot aims to capitalize on the age of artificial intelligence; Some managers believe that even if the number of current employees decreases, this will lead to new roles and long-term value creation.
AI is increasingly cited as a reason for layoffs as companies direct funds to develop and implement AI technologies. Some businesses are streamlining operations or restructuring teams, using AI as justification to reduce payroll and focus on new opportunities.
Cisco is laying off about 4,000 people as part of a restructuring to shift investments to artificial intelligence and other growth areas. This move is accompanied by a strong revenue outlook driven by significant AI infrastructure orders from hyperscalers.
Yes, companies like Dow and Pinterest have also announced layoffs while talking about AI. Dow is streamlining operations with an emphasis on AI and automation, while Pinterest is reallocating resources to AI-focused roles and products.
Although they don’t always explicitly cite AI as the sole reason, companies like Meta and Amazon are investing billions of dollars in AI while simultaneously laying off thousands of people. For example, Meta cited increased spending on AI infrastructure and expert hiring, as well as efficiency needs.
Regardless, there are some companies that have announced layoffs recently, at least acknowledging the role of artificial intelligence along the way.
On Wednesday, Cisco Systems announced plans to cut fewer than 4,000 jobs, or about 5% of its workforce. The announcement came on the same day as the technology giant announced record revenue for its third fiscal quarter amid rising demand for AI tools and infrastructure.
“The companies that will win in the age of AI will be those with the focus, urgency, and discipline to continually shift investment,” CEO Chunk Robbins told employees in a memo, and that meant “making tough decisions.” But he said Cisco will also help employees affected by the outages find new opportunities, “internal or external.”
In February, financial services provider Block moved to: laid off more than 4,000 people Among its more than 10,000 employees. The parent company of payment platforms such as Square and Cash App has been vocal about restructuring to leverage artificial intelligence.
“The basic thesis 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. “A much smaller team using the tools we created can do more and do better.”
Tech companies aren’t the only ones drawing attention to artificial intelligence when initiating layoffs. In January, chemical maker Dow, Inc. laid off approximately 4,500 people – as part of a broader effort to “streamline” operations. This included placing greater emphasis on artificial intelligence and automation.
Also in January, Pinterest said it would Dismissal below 15% The workforce is also expected to shrink as the company pours more of its money into artificial intelligence. The image-sharing platform said the cuts are part of broader “transformation initiatives” that include reallocating the company’s resources to AI-focused roles and prioritizing AI-powered products.
Last autumn, Lufthansa Group announced that it would lay off 4,000 people by 2030. points to the adoption of artificial intelligenceDigitalization and consolidation efforts among member airlines.
There are a number of other big names involved, too, although they haven’t explicitly mentioned or linked tech to recent layoff announcements. Meta, Microsoft And Amazon – they are laying off thousands of people while simultaneously investing billions of dollars in artificial intelligence.
Meta, for example, plans to lay off about 8,000 workers, or about 10% of its workforce, starting next week. In announcing the cuts last month, Facebook’s owner cited the need to balance specific investments and broader efficiency more broadly.
Still, the move comes as Meta continues to increase spending on AI infrastructure and hiring highly paid AI experts. And earlier this year CEO Mark Zuckerberg said: When will it be 2026“Artificial intelligence is starting to dramatically change the way we work.”
