Tech companies are accelerating job cuts as they pivot toward artificial intelligence, with major firms like Intuit, Meta, and Cisco announcing layoffs this week. Intuit cut 17% of its workforce (3,000 employees) to streamline operations and invest in AI, while Meta laid off 8,000 workers as part of its AI expansion. Cisco also reduced headcount, citing AI integration as a key factor. These moves follow a broader trend of AI-driven layoffs, with nearly 50,000 job cuts linked to AI this year, according to Challenger, Gray & Christmas. Economists warn that AI could eliminate up to 15% of U.S. jobs over the next five years, though most current cuts are concentrated in the tech sector.
Intuit’s CEO, Sasan Goodarzi, framed the layoffs as necessary for a leaner, AI-focused company, while Meta’s cuts align with its shift toward AI agents and infrastructure. Some workers, like Andrew Tran, a former Meta product designer, argue that companies should prioritize retraining over layoffs. Tran criticized corporate reliance on AI for cost-cutting rather than workforce development, though he acknowledged that his role was not directly replaced by automation. Intuit reported a 10% revenue increase despite the layoffs, suggesting that AI investments may drive efficiency gains.
The broader impact of AI on hiring remains uncertain, with economists noting that weaker demand for junior and entry-level roles could persist. While some analysts emphasize AI’s disruptive potential, others argue that its effects are still unfolding. Tech-sector layoffs have surpassed 114,000 this year, according to Layoffs.fyi, with firms citing restructuring, cost-cutting, and AI-driven productivity as key factors.