Companies That Blamed AI for Job Cuts

These companies explicitly cited AI or automation as the reason for job cuts. In many cases, the “AI transformation” narrative masked what was really offshoring, cost-cutting, or both.

Block Inc

1 Mar 2026+20% on announcement

700

What They Claimed

Framed as "AI transformation"

What Actually Happened

Mass layoffs framed as AI-driven restructure across Block’s global operations.

Atlassian

1 Mar 2026

500

What They Claimed

"AI transformation" restructure

What Actually Happened

500 Australian jobs cut as part of a global reduction of 1,600. Majority were customer-facing, not technical roles being automated.

WiseTech Global

20 Feb 2026+11% on announcement

2,000

What They Claimed

"Adopting AI across software and operations"

What Actually Happened

WiseTech shares surged 11% on announcement of 2,000 cuts — roughly 30% of the workforce.

Envato

1 Feb 2026

200

What They Claimed

"Increasing investment in AI"

What Actually Happened

Cut 200 jobs (33% of workforce) weeks after being acquired by Shutterstock for $245M.

Telstra

15 Jan 2026

800

What They Claimed

AI-driven efficiency

What Actually Happened

CWU accused Telstra of "offshoring by stealth" under cover of AI transformation. 800 jobs cut with Infosys outsourcing.

Culture Amp

20 Nov 2025

60

What They Claimed

"AI focus grows"

What Actually Happened

Cut 60 jobs while still advertising engineering roles in Melbourne and Sydney.

Atlassian

1 Jun 2025

150

What They Claimed

Roles "eliminated by AI"

What Actually Happened

150 customer support roles cut, citing AI systems as the replacement. Offshore operations in Philippines and India continued to grow.

Canva

2 Apr 2025

10

Data compiled from ASX announcements, AFR, iTnews, FSU reports, and company statements at dates reported. “AI-attributed” means the company explicitly cited AI or automation as a reason for cuts.