12 Companies That Have Cited AI in Recent Layoffs
Worries that AI could replace human workers have grown sharply — and for some companies, that shift is already underway.
A growing number of firms have announced layoffs while explicitly pointing to AI-driven efficiencies as a key factor. A March 2026 report from Challenger, Gray & Christmas found that AI was cited in 8% of job-cut announcements this year. While some reductions reflect genuine productivity gains from the technology, others have raised questions about “AI washing” — using AI as a convenient excuse for cuts that would have happened anyway. OpenAI CEO Sam Altman has noted that some companies are blaming AI for layoffs that were already planned.
An MIT study from last year found that 95% of corporate AI investments have generated zero measurable return so far. At the same time, some companies that cut roles are later rehiring for others: a 2025 Robert Half survey showed that 29% of hiring managers had reopened positions previously eliminated after implementing AI.
Here’s a rundown of notable companies that have linked recent layoffs to AI:
Angi
In January, Angi (formerly Angie's List) cut approximately 350 jobs, citing “AI-driven efficiency improvements” as a major reason. The company said the reductions were part of a broader effort to lower operating expenses and optimize its structure for long-term growth.
Atlassian
Atlassian laid off 1,600 employees (about 10% of its global workforce) in March as it repositioned for the “AI era.” CEO Mike Cannon-Brookes acknowledged that AI is changing the mix of skills needed and the number of roles required in certain areas. In a message to staff, he noted it would be “disingenuous” to pretend otherwise, while emphasizing the company’s focus on AI and enterprise growth.
Block
In February, Block CEO Jack Dorsey announced plans to reduce the company’s workforce from over 10,000 to under 6,000. Despite strong business performance, Dorsey highlighted how AI tools, combined with smaller and flatter teams, are enabling a fundamentally new way of working.
Cloudflare
On May 7, Cloudflare announced it would cut more than 1,100 roles (roughly 20% of its workforce) while reorganizing for the “agentic AI era.” The company reported a more than 600% increase in AI usage in recent months. CEO Matthew Prince noted that few engineers or customer-facing sales roles were affected and said the company would continue aggressive hiring in those areas.
Coinbase
On May 5, Coinbase CEO Brian Armstrong revealed plans to cut 14% of its workforce (about 700 roles), citing both market volatility and AI’s impact on productivity. He highlighted how engineers are now shipping in days what once took teams weeks and described rebuilding the company as an “intelligence” with humans guiding AI agent fleets.
Crypto.com
Crypto.com cut 12% of its staff in March. CEO Kris Marszalek said the reductions targeted roles that “do not adapt in our new world” as the company integrates enterprise-wide AI. He emphasized pairing top performers with advanced AI tools to achieve new levels of scale and precision.
HP
HP is reducing its corporate workforce as part of a multi-year plan that includes AI adoption. In November 2025, the company announced it would cut 4,000–6,000 jobs by the end of 2028, projecting roughly $1 billion in savings through workforce reductions, simplification, and productivity gains from AI.
IBM
IBM CEO Arvind Krishna has been vocal about AI replacing certain roles. Last year, he said the company had already replaced hundreds of HR employees with AI. In November 2025, IBM announced cuts affecting a single-digit percentage of its global workforce while shifting hiring priorities toward AI, quantum computing, and recent college graduates. Krishna has noted that AI is also driving increased hiring in programming and sales.
Klarna
Klarna’s workforce has already shrunk significantly — from 7,000 in 2022 to about 3,000 today. CEO Sebastian Siemiatkowski expects it to fall below 2,000 by 2030 through layoffs and attrition. He credits AI for major productivity gains (its AI assistant now handles the equivalent of 853 full-time agents) while noting that roles requiring human connection will remain.
Salesforce
In February, Salesforce cut fewer than 1,000 roles across marketing, product, data analytics, and its Agentforce AI division. CEO Marc Benioff previously said the company reduced its customer support headcount from 9,000 to about 5,000 after deploying AI agents, though many affected employees were redeployed to other areas.
Snap
In mid-April, Snap announced it would lay off 1,000 employees (about 16% of its global workforce) and close over 300 open roles. CEO Evan Spiegel pointed to “rapid advancements” in AI, noting that small squads using the technology can operate far more efficiently. The move is expected to deliver roughly $500 million in annualized cost savings.
WiseTech Global
In February, WiseTech Global CEO Zubin Appoo announced plans to cut 2,000 jobs (30% of its workforce), attributing the reductions to AI-enabled productivity gains. He declared that “the era of manually writing code as the core act of engineering is over” and highlighted major efficiency improvements, including potential 50% reductions in areas like customer service.
**Key Questions Remaining**
- How exactly is “AI efficiency” being measured?
- Why have many AI investments delivered limited returns so far?
- To what extent is “AI washing” playing a role in these announcements?
The coming years will reveal whether these cuts represent a genuine transformation in how work gets done — or simply the latest cycle of cost-cutting with a new buzzword.