NEW YORK (AP) — Major corporations are increasingly mentioning artificial intelligence when announcing workforce reductions, creating anxiety among employees about the future of their careers.
This trend is causing concern across various industries, as workers worry about how quickly companies are embracing AI technology. Even when AI isn’t directly replacing human workers, some corporations have revealed staff cuts while shifting funds toward AI development or promoting new operational efficiencies — creating uncertainty about future employment opportunities and available positions.
However, company explanations often lack specificity. Artificial intelligence is seldom the only factor businesses mention when implementing workforce reductions, with most continuing to reference broader organizational changes or challenging economic conditions. Some company leaders have also indicated that while they’re reducing staff to reallocate resources currently, AI development and its requirements might create additional positions in the future. Nevertheless, determining whether this represents the actual motivation or simply messaging intended for investors remains difficult.
Here are several corporations that have revealed workforce cuts while referencing AI’s influence in their decisions.
This Wednesday, Cisco Systems revealed intentions to eliminate fewer than 4,000 positions, representing approximately 5% of its staff. This announcement coincided with the technology company reporting record third-quarter revenue, driven by increasing demand for its AI products and infrastructure.
In an internal communication, CEO Chuck Robbins informed staff that “the companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment” — requiring “making hard decisions.” However, he indicated Cisco would assist affected workers in finding alternative opportunities, “whether internal or external.”
In February, financial services company Block decided to eliminate more than 4,000 positions from its workforce of over 10,000 employees. The company behind payment systems like Square and Cash App openly discussed restructuring to take advantage of AI opportunities.
“The core thesis is simple. Intelligence tools have changed what it means to build and run a company,” CEO Jack Dorsey wrote to shareholders during that period. “A significantly smaller team, using the tools we’re building, can do more and do it better.”
Technology companies aren’t alone in referencing AI when announcing job cuts. During January, chemical manufacturer Dow, Inc. revealed plans to eliminate approximately 4,500 positions as part of a broader effort to “streamline” operations. This initiative included increasing focus on AI and automation.
Also in January, Pinterest announced workforce reductions affecting less than 15% of its employees as the company shifts more resources toward AI. The image-sharing service described the cuts as part of wider “transformation initiatives” — including moving company resources to AI-focused positions and emphasizing AI-enhanced products.
Last autumn, Lufthansa Group indicated it would eliminate 4,000 positions by 2030 — citing AI adoption, digitalization, and consolidating operations among affiliated airlines.
Although not always explicitly connecting the technology to recent workforce reduction announcements, numerous other major corporations — including Meta, Microsoft and Amazon — are also eliminating thousands of positions while investing billions in AI development.
Meta, for instance, intends to eliminate approximately 8,000 workers, representing roughly 10% of its staff, beginning next week. When revealing the cuts last month, the Facebook parent company more generally referenced needs to balance certain investments and improve efficiency.
However, this decision comes as Meta continues increasing AI infrastructure spending and hiring expensive AI specialists. Earlier this year, CEO Mark Zuckerberg predicted 2026 as when “AI starts to dramatically change the way that we work.”
