The Real Reason Companies Are Shedding Workers
Video Overview & Insights
We've heard a lot of conflicting stories about the big corporate layoffs this year... let's cut through the noise to find out what's behind them and why CEOs wouldn't want you to know.
its another excuse to in-source massive h1b abuse, or outsource to cheaper labor countries. the worst thing to ever happen to american workers was the usa becoming the world reserve currency country....our labor hasnt been able to compete since then and its eroded every year since. now foreign workers are 50p cheaper than any american just because our currency is so over valued compared to other world currencies....america has to chose, world reserve for the banks and govt or actually a competitive productive economy. cant have both,..word needs rebalancing. see michael pettis trade wars are class wars.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson, AFC®
Directors: Katie Graham & Andrew Matthews
It's all bullshit and greed.
Written by: Andrew Matthews
Executive Producer: Amanda Fox
This tracks. I work at an IT software company that owns about 65% of its market. We have nearly 100% buy-in to use AI as much as possible to increase output because we never had enough people to begin with. First, the ramp-up to change systems to include it takes much longer than just using AI on individual tasks. Second, and more importantly, it still cannot replace last-mile processes like QA, which tends to be the longest part of the process. Now, not only are you testing for traditional coding issues, but you also have to figure out whether the model completely hallucinated part of the design. AI has not been at its current level long enough for enterprise-level systems and processes to be shifted over to it. The use cases for it in its current state are extremely limited. Some very high-level people, including myself, spend a lot of time figuring out where it can be useful. We are often limited by third-party systems that are also not quite at the maturity level with AI they need to be. Major players like Microsoft have made massive mistakes around AI and needed to correct course.
Having said all that, I would not put much stock in the MIT statistic of 95% failure. Almost all technical projects failed before AI, so effectively that has not changed. That is the nature of the beast. Tech may seem as if we are all a bunch of scientists running the scientific method, but the reality is that it's the largest concentrated group of creatives in any industry, and as such most creations fail, mostly by design, and are then iterated upon until it works. We haven't gotten to the point of having a proven method that includes AI yet.
None of this means that we will stop using AI or that the speculators will line their pockets by correctly calling a bubble for the first time in history. It just means that this is a technological revolution, and just like computers themselves, we are in no way close to the end of that revolution. This is all still AI 1.0.
I would like to make one very serious correction to this. AI does many things, but writing sloppy code is not one of them. It writes the best code ever written. Its coding practices are not at issue. Human developers are terrible at writing code. The bane of my existence for 30 years has been sloppy human code and incomprehensible system designs that will ensure the most expensive system is locked in for the next 20 years. The problem with AI is that it frequently doesn't understand the needed solution, or it hallucinates perfectly written code to solve the wrong problem.
Produced by: Katie Graham
Edited & Animated by: Ben Harrison
The funniest shit I've experiencing was the place I work at downsizing from around 4k to around 1.5k and then seeing managers run around like chickens without a head asking employees if by any chance they don't know some random technology cause all the people who did are gone and they can't make clients an offer without having engineers, fking cinema.
Fact checker: Yvonne McGreevy
Executive in Charge for PBS: Maribel Lopez
Ludd was right
Director of Programming for PBS: Gabrielle Ewing
Assistant Director of Programming for PBS: John Campbell
AI washing is the likely thing here. Large companies are full of useless people, like HR etc. If you are getting fired, it because you are not providing value and they don’t even need AI to replace you. If you feel that you do actually provide value, then don’t worry, you can land on your feet and find a job, they didn’t deserve you anyway.
Images by: Shutterstock
Music by: APM
Remember Dei hires and how useless those jobs were? Yeaaah, death by a million cuts..
Two Cents is a production of Spotzen for PBS Digital Studios
sources:
This isn't rocket science. We're dealing with the end of a long run of free inflationary money and pandemic-era over-hiring. They're blaming AI because it's a convenient scapegoat most people are ignorant of (and afraid of... thanks media!), so they don't know enough to call BS and they're not inclined to question anyway because it fits with their existing biases.
https://www.forbes.com/sites/guneyyildiz/2026/01/20/ai-productivitys-4-trillion-question-hype-hope-and-hard-data/
https://theconversation.com/tech-companies-are-blaming-massive-layoffs-on-ai-whats-really-going-on-278314#:~:text=In%20the%20past%20few%20months,to%20increased%20reliance%20on%20AI.
Because blaming AI for down-hiring makes you look better in the public view and investors. Better than admitting you were overhiring and need to restructure because of bad strategy decision.
https://gizmodo.com/workers-most-at-risk-of-being-hit-by-ai-layoffs-are-well-positioned-to-adapt-study-finds-2000733987
https://gizmodo.com/ai-added-basically-zero-to-us-economic-growth-last-year-goldman-sachs-says-2000725380
AI suck at customer service 😭😭 cmmon
https://news.darden.virginia.edu/2026/03/13/is-ai-the-strategy-or-the-scapegoat-behind-blocks-40-layoff/
https://www.theguardian.com/technology/2026/mar/08/block-ai-layoffs-jack-dorsey
wow, here are the folk using AI wrong.
https://builtin.com/articles/ai-washing-layoffs
https://hbr.org/2026/01/companies-are-laying-off-workers-because-of-ais-potential-not-its-performance
My view: companies hired a lot of people for non-business reasons. They are now using the cover of AI to correct that mistake and re-hire as needed based on performance metrics and business models.
https://www.usatoday.com/story/money/2026/02/26/ai-mass-layoffs/88888700007/
https://www.cbc.ca/news/business/block-layoffs-ai-9.7108981
Please use AI to change the vocal fry in this video 😂 /j
https://fortune.com/2026/03/03/goldman-earnings-ai-anxiety-no-meaningful-impact-productivity-economy-30-percent-in-2-areas/
https://budgetlab.yale.edu/research/ai-productivity-boom-dont-count-your-productivity-data-chickens
HA!! Have you tried Copilot? Who's work would anyone believe that fail of a tool would be able to do? it can't even do simple organisation of data even if you script the process for it to do it!!
https://theweek.com/tech/artificial-intelligence-productivity-gains-business
https://futurism.com/artificial-intelligence/survey-ceos-ai-workplace
Working as a software developer, the people who have embrased AI and Agentic Development the most, have seen a spike in productivity from around 18 of lines of code pr working hour, to above 650 lines of code pr hour 6 mdr after starting to use AI.
AI have radical changed my work so far, and I have just now really started the journey, I use most of my time managing AI Agents, and prompting them, and nearly no time writing code.
https://futurism.com/artificial-intelligence/what-happens-workplaces-embrace-ai
https://finance.yahoo.com/news/meta-20-layoff-rumor-coming-142935490.html
You don't need AI to boost stock prices. Any time a company lays off a bunch of people, the stock goes up. Don't ask me for an explanation, altho I'm sure there is one.
https://bigthink.com/business/the-great-progression-productivity/
https://www.hiringlab.org/2026/01/09/december-2025-jobs-report/
I’ve analysed the management’s job in a company all the way up to the CEO, and I can tell you that every single manager can be replaced today with a gain in productivity
More User Perspectives
Two heavily tattooed people are exactly whom I want to explain job market trends to me.
@gasparbalazs1290Also as someone who is working currently on a software tool that uses AI to speed up some administrative process I feel a huge contradiction between the promises of intelligence the CEOs await and the actual capabilities of LLMs. LLMs are dumber than we think, and humans are MUCH more productive than CEOs want to admit. LLM products will be a tool the workers use like they use excell or any ERP.
@ahmed51988Butbutbut number go up so it’s fine
@WeedCat42013Conclusion: it is AI
@DoodleDani think that... i might be ai...
@elsiepierce5509Countless times, I've walked into a retail establishment only to be ignored by vapid employees who clearly don't make the connection between the customer and their pay check. I had one young man turn his back to me while conversing with a coworker at the check out. I should have walked out but I doubt they'd have known why or cared. I calmly said, "Honey, NEVER turn your back on your customer." He quickly apologized. Now, CEO's don't seem to make the connection between their employees and a robust economy. If/when they fire all or most of their employees, they have simultaneously fired all/most of their customers as well as everyone else's customers. Without jobs, no money is spent. Robots don't spend money, take out loans, use credit cards or pay taxes. So I'm saying it again, if anyone is listening, "Honey, NEVER turn your back on your customer." Forget UBI. If the wealthiest among us aren't willing to pay taxes to benefit their country, their state and their fellow man now, what makes you think that they will make an even greater contribution once they own EVERYTHING and have made themselves as god/kings, at least in their own eyes? It's not just an empty promise. Universal Basic Income is a silly and dangerous fantasy. They currently begrudge us the social security that we were forced to pay into... and you think once you've been replaced by a robot, they will just take care of you like a beloved pet? Wakey, wakey, hun!
@SaintTrinianzI think looking the tidal wave that is coming and preparing for it is the smart move.
CEO's pray everyday for a recession. That way, they can shed head count. Or, the CEO asks everyone to take a 10% cut to save the company because they know the sheepal will do it. They will complain but they will comply.
Whereas math does not support this dumb move. What do I mean by that?
If 20% of the firm make 80% of the salary, and 4% of the firm make 64% of the salary, then math dicates if 1% of the firm makes 50% of the salary, then remove 1% of the top earners, (including yourself), from pay and the problem is resolved.
An Ai could do my job a hundred times better. But because I work in a hospital, I am the 3rd level backup if the power goes out.
Companies bet and sought after emerging markets during 2020-2022. The emerging markets didn't stick while them, and they alienated normal consumerbase.
Now the companies neither have nor eat the cake.
AI isn't to blame
Skip to 7:10 video starts there
@EnemyFartCloud7:15 I think the layoffs come mostly from woke DIA BS. Companies hired people and created departments which don't add any value to them. Virtue signaling is dead since Trump entered the white house. Now companies are allowed to show their real face again. No more rainbow flags and stuff, because they never cared in the first place. But instead saying that they give a crap about woke s**t, they just blame ai.
@nonenone7742That's a very interesting perspective, and one I would have not imagined. Good video.
@LuisRoblesPlazaremember that AI requires learning how to use it well. stupid implementations get stupid results. bad specs make bad apps.
@JeffJustice1Click bait video
@SelfSustainableCityThis research is old
@entertainmentyoutube3606AI is a tool. If you have a hammer everything looks like a nail. If you invested in Ai, everything.......
@rickylefleur2158😮😮😮😮I audited a major company that has been downsizing for several decades due to improved production lines. Yes, they use faster computers but their technology is just able to make more units per man hour. Artificial intelligence is no big thing to them.
@wickedbird1538I noticed that y'all completely avoided the fact that most of these "AI job losses" are American workers/devs getting fired while those same companies quietly hire almost the same amount of H1Bs as Americans they just fired. Pretty much every tech company is doing it....but hardly anyone is talking about it. The numbers are public but everyone's treating that inconvenient fact as a third rail. Pretty diningenuous.
@mickjayplaysLove your tattoos guys!!
@simonbahamonde7370Great video, One thing I’ve learned: AI won’t make you productive by itself.
The real advantage is knowing where to use it. Start with the repetitive stuff first like emails, summaries, research, follow-ups, planning, content outlines, and checklists.
That’s where most people see the biggest time savings.
I put together a free playbook with 15 practical AI workflows for work and business. The link is in my bio if anyone wants it.
The investor should ask why they are they not leveraging AI to grow their business. As you mentioned the jury is still out on how much of an increase we will see with productivity. Laying off workers before you know how much AI will improve production in your business is the equivalent of jumping and hoping a net will appear.
What if it takes years before you can get back to the same production your competitors are going to happily take your market share.
Reducing expenses is a race to the bottom. If you can produce a product or service for Half the costs so can your competitors, but if you take the opportunity to use AI to grow your business you can achieve better results by doubling the production output and growing market share.
The question is do you want to use AI to grow or shrink the business. While both compound only one is in a positive direction.
I don't think any of us ordinary people really understand how much of a wet dream it is for a CEO to have "AI" that will simply replace his labor
@astroNexxTech companies measuring productivity by lines of code is funny.
@oneszerossIt’s Trump’s shitty economy. The business I work for has been struggling since last summer. We’ve lost like 30% of our staff since Trump took office
@lordhoweproductions3733AI robots will be taking trade jobs soon enough. Robots are progressing real fast and they can keep entire code books in their memory.
@fritzbang4805Opinions are a dime a dozen. Yours isn't worth two cents.
@davewbairdI could not take Julia having Philip's moustache seriously 😅😂
@joshuabernil8118So... overall it's the same view as most other videos on AI. If AGI occurs and the investments payoff, the economy collapses due to massive job losses that will grow with AGI and Robotics. If AGI fails the propped up economy collapses due to over investment.
For us "normal" people, it's a lose lose, which ever path is taken.
For those who control these massive companies, it's only a loss if it fails and if the government doesn't bail them out with our tax dollars.
There is no way AI can be stopped. So better quit wishful thinking and learn how to live with it and use it for good.
@starcevdaI think it’s time for the luddite to start the butlerian jihad.
@huuffff1990 PCs will destroy Jobs. 2000 oh there are more jobs in IT now. But the Internet will destroy Jobs. 2010. Oh wait there are more jobs. 2020 AI is taking the jobs. 2030 oh there are more jobs now with AI. But the robots will take our jobs. But the robots will take our jobs. 2040 oh wait there are now more jobs....
@xheerioOne guy in our team just got laid off for "business reasons".
The thing is, the team was already in a critical state and with this move it might just die.
I'm okey with that, but the decision seems entirely reliant on the remaining people magically conjuring up work.
Six and a half minutes into an eight and a half minute video and you finally get to the point. Up 'til then it was six and a half minutes of AI 'slop'. Well done.
@detch01I just scrolled back to earlier videos of you guys. What happened!?! Went from clean cut to edgy Jesus with sleeve look. She gained a bit of weight. Is it the fame ?
@jtr271