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Big corporations are using AI investment as an excuse to cut jobs. But according to Nvidia's VP of applied deep learning, the economics behind these mass layoffs don't add up.
Jason Calacanis used Block (NYSE:XYZ) as a case study on a recent This Week in Startups episode to argue that AI-driven productivity gains have become a prisoner’s dilemma for every public company CEO. Block cut over 4,000 people in February 2026, taking headcount from over 10,000 to under 6,000. Three months later, the company posted ... Block’s 40% Layoffs Will Drive 62% Earnings Growth: ‘If You Don’t Have Time to Use AI, You Don’t Have a Job’
AI is rarely the sole reason companies cite when taking layoffs, with most still pointing to wider corporate restructuring or macroeconomic headwinds. On Wednesday, Cisco Systems announced plans to cut under 4,000 jobs, or about 5% of its workforce. The announcement arrived the same day the tech giant unveiled record revenue for its third fiscal quarter, amid soaring demand for its AI tools and infrastructure.
Despite recent downsizing, tech companies are still hiring—they're just looking for a very different kind of engineer.
Shares of the networking giant, already near record highs, jumped by double digits as Chuck Robbins laid out plans to make Cisco ‘one of those winners.’
Shares of PayPal Holdings (NASDAQ:PYPL) picked up another cautious analyst signal on Tuesday, as Truist lowered its price target to $44 from $45 while maintaining a Sell rating. The price target cut is modest in size, but the continued Sell call carries weight in a market where consensus sits at Hold. For prudent investors, the ... Truist Cuts PayPal Price Target as Cross-Border Volume Weakness Bites
XYZ launches Square for Drive-Thru, helping QSRs boost order accuracy, speed service and simplify operations.
Block has staged a turnaround from its lows, driven by layoffs, to create more space for AI.
Cloudflare (NET) announced a round of layoffs, following Coinbase's (COIN) similar announcement at the beginning of the week. Yahoo Finance Senior Business Reporter Ines Ferré, Yahoo Finance Senior Reporter Brooke DiPalma, and EMJ Capital founder and president Eric Jackson chat with Yahoo Finance's Brian Sozzi about the growing impact of artificial intelligence (AI) on the workforce.
The payments company posted strong adjusted earnings following a dramatic downsizing, which management attributed to the influence of artificial intelligence.
Block, Coinbase, PayPal, Crypto.com, and others are tying job cuts to AI as investors question real efficiency gains.
