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,Kelsey Vlamis,Shubhangi Goel,andKatherine Tangalakis-Lippert

Concerns about AI eventually taking over human roles have increased sharply in recent months - and evidence suggests this shift may already be underway.

Several organizations have disclosed workforce reductions and named AI-driven efficiencies among the primary reasons.

A March analysis from career transition firm Challenger, Gray, and Christmas showed that AI has been referenced in 8% of announced job cuts so far this year.

With this wave of reductions underway, observers have questioned whether AI is truly displacing positions or if some level of AI washing is occurring. OpenAI chief Sam Altman noted that certain firms are using AI as an excuse for cuts that were likely coming anyway.

An MIT study published last year indicated that 95% of corporate AI investments have so far produced zero return.

While some businesses are substituting technology for staff, they may later expand teams or restore select positions because of AI. A 2025 Robert Half survey of 2,000 hiring managers found that 29% had reinstated roles previously eliminated after rolling out AI tools.

Below is a list of companies that have carried out AI-related layoffs:

Angi

Angi, the contractor listing platform formerly called Angie's List, disclosed in January plans to eliminate about 350 positions partly due to AI-driven efficiency gains.

The firm noted the reductions form part of efforts to lower operating costs and refine its structure for sustained expansion.

Atlassian

Atlassian revealed in March the elimination of 1,600 positions, or roughly 10% of its global staff. The Australian-American software maker described the action as a restructuring to emphasize AI and enterprise expansion.

In a Securities and Exchange Commission filing, the company framed the move as preparation for what CEO Mike Cannon-Brookes called the AI era.

It would be disingenuous to pretend AI does not alter the skills required or the number of roles needed in some areas. It does, Cannon-Brookes wrote to staff.

On the 20VC podcast last October, before the cuts, Cannon-Brookes stated he expected to employ more engineers within five years because technology creation is not output-bound.

Block

In a February post on X, Block CEO Jack Dorsey announced cuts reducing the company's staff from over 10,000 to under 6,000. He said operations remained strong and profits were rising, yet a new operating model was taking shape.

We are already seeing that intelligence tools paired with smaller teams enable a fundamentally different way of building and running a company, Dorsey wrote.

During the subsequent earnings call, Dorsey predicted more firms would adopt AI for efficiency, noting Block was ahead of a trend all companies will eventually follow.

Cisco

Cisco stated on May 13 it would cut fewer than 4,000 jobs while reorganizing around artificial intelligence, according to a memo from CEO Chuck Robbins.

The companies that succeed in the AI era will demonstrate focus, urgency, and discipline in shifting investments toward areas of strongest demand and long-term value, Robbins wrote.

The reductions, representing less than 5% of the workforce, coincided with a stronger-than-expected quarterly report and an upward revision to revenue guidance amid rising AI infrastructure demand.

Cloudflare

Cloudflare announced on May 7 plans to eliminate more than 1,100 positions as it prepares for the agentic AI era. The cybersecurity firm reported AI usage had risen over 600% in three months, with thousands of agent sessions run daily across teams.

This requires intentional architecture for the agentic AI era to maximize customer value, the company memo stated.

CEO Matthew Prince noted in response to criticism that very few engineers or customer-facing sales roles were affected and that hiring would continue aggressively in those areas. The cuts impacted about 20% of the 5,483-person workforce.

Coinbase

Coinbase CEO Brian Armstrong disclosed a 14% workforce reduction affecting roughly 700 employees.

In a May 5 X post, Armstrong shared an internal email citing market volatility and AI-driven changes to work patterns.

Over the past year I have seen engineers use AI to complete in days what once required weeks for a team, Armstrong wrote, adding that the pace possible with small focused teams has shifted dramatically.

Armstrong described the effort as not merely reducing headcount but rebuilding the company as an intelligence system with humans guiding alignment at the edges, including AI-native pods and experiments with one-person teams.

Crypto.com

Crypto.com announced on March 19 a 12% staff reduction. CEO Kris Marszalek wrote on X that affected roles were those that do not adapt in our new world.

We are joining the list of companies integrating enterprise-wide AI, Marszalek stated. Firms that act quickly and pair top AI tools with top performers will reach previously impossible levels of scale and precision.