A growing number of major companies are invoking artificial intelligence when they announce job cuts, even as many of those same firms report surging revenue or pour billions into AI infrastructure. A review of recent corporate announcements and regulatory filings shows at least six major companies — Cisco, Block, Dow, Pinterest, Lufthansa and Meta — have detailed plans to eliminate more than 20,000 positions so far in 2026. In many cases, executives directly tied the reductions to a broader pivot toward artificial intelligence, even as some acknowledged that AI could create new roles in the future.
The computing and networking giant Cisco Systems provided one of the most dramatic illustrations. On Wednesday, the company said it would eliminate under 4,000 jobs, or about 5% of its workforce, the same day it reported record revenue for its third fiscal quarter, propelled by what it described as soaring demand for AI tools and infrastructure.
In a memo to employees, CEO Chunk Robbins said 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.” He added that Cisco would assist affected employees in finding new opportunities.
In February, Block — parent of the Square and Cash App payment platforms — moved to lay off more than 4,000 of its roughly 10,000 workers. CEO Jack Dorsey was explicit about AI’s role in the decision. “The core thesis is simple,” Dorsey told shareholders in a letter. “Intelligence tools have changed what it means to build and run a company. A significantly smaller team, using the tools we’re building, can do more and do it better.”
The trend is not confined to tech firms. Chemicals producer Dow Inc. announced in January it would cut 4,500 jobs as part of an effort to “streamline” operations, explicitly citing a greater reliance on AI and automation. Also in January, the image-sharing platform Pinterest said it would lay off under 15% of its workforce while reallocating money to AI-focused roles and prioritizing AI-powered products.
Meanwhile, Meta Platforms plans to cut about 8,000 jobs — roughly 10% of its staff — starting next week. The Facebook and Instagram owner cited a need to offset certain investments and drive efficiency. The move comes as Meta pours billions of dollars into AI infrastructure and hires highly paid AI experts. Earlier this year, CEO Mark Zuckerberg said 2026 will be the year when “AI starts to dramatically change the way that we work.” Other technology behemoths, including Microsoft and Amazon, are also trimming thousands of positions while accelerating their own AI spending, though they have not explicitly tied recent layoffs to AI.
Outside the United States, Germany’s Lufthansa Group disclosed last fall that it would shed 4,000 jobs by 2030, pointing to AI adoption, digitalization and the consolidation of work among member airlines.
Corporate narratives around AI and job cuts often remain vague. While the announcements cite AI as a factor, it is rarely the sole reason given; many companies also point to broader restructuring, macroeconomic headwinds or efficiency drives. Some executives have suggested that current cuts are about reallocating resources, and that AI will ultimately create new roles. But with details scarce, the uncertainty is feeding anxiety among workers across both tech and industrial sectors.