Companies cite AI investment as layoffs spread from Cisco to Block

Cisco Systems, Block, Dow, Pinterest and Lufthansa are among companies linking recent job cuts to artificial intelligence investment, restructuring or automation, adding to worker concerns that AI spending is reshaping payrolls across sectors. Cisco said on May 13, 2026, it would cut under 4,000 jobs, or about 5% of its workforce, the same day it reported record fiscal third-quarter revenue driven by AI tools and infrastructure demand. Block said in February 2026 it would cut more than 4,000 employees from a workforce of over 10,000, with CEO Jack Dorsey saying smaller teams using intelligence tools could do more. Dow announced about 4,500 cuts in January 2026 as part of efforts to streamline operations with AI and automation. Pinterest said in January 2026 it would cut under 15% of staff while shifting resources to AI roles and products. Meta plans to cut about 8,000 jobs, or 10% of its workforce, starting May 18, 2026, while increasing AI infrastructure spending.