The Next Round of AI-Induced Layoffs is Here
The Artificial Intelligence (AI) revolution, if successful, will be extremely deflationary.
We previously noted that numerous Fortune 500 companies are announcing large-scale layoffs, replacing sales, marketing, management and other white-collar jobs with AI. Some major announcements:
- Proctor and Gamble is laying of 7,000 people, roughly 15% of its non-manufacturing staff.
- Microsoft announced it will be firing 6,000 people, most of them managers.
- Walmart has said it is laying off 1,500 positions in sales, tech, and advertising.
This is just the beginning…
Ford’s CEO recently claimed AI could replace half of all white-collar jobs in the U.S. Amazon’s CEO, Andy Jassy, has told employees to AMZN will be shrinking its corporate work force dramatically due to AI. And Shopify, Fiverr will NOT be hiring anyone until they’re certain that AI cannot do the job. And Microsoft just announced a second wave of layoffs: 9,000 workers.
All of this is HIGHLY deflationary, both in the good and the bad sense. The good will be that goods and services will be cheaper due to increases in productivity. The bad is that AI will also reduce incomes and result in higher unemployment. Indeed, unless all these CEOs are just pontificating, it is quite possible that the job force will look totally different in five years as AI and robotics replace workers.
This is why the market is placing such a premium on AI-related stocks: the growth is likely going to be greater than most investors realize.
Case in point, Nvidia (NVDA) just hit a new all-time high.
Meta (META) another AI -related company (CEO Mark Zuckerberg has made it a personal mission to establish META as THE leader in the AI-build out) has done the same.
Ditto for Microsoft (AI) which is partnering with OpenAI.
If the AI revolution is over, the market certainly doesn’t believe it. By the look of things, it’s going strong with the markets discounting a highly profitable future for those companies poised to profit from it.
So, if you think you’ve “missed the boat” here you’re mistaken. There are plenty of opportunities to profit from AI investments going forward.
On that note, we just published a new special investment report The AI Plays Your Broker Doesn’t Know About that details three unique investments designed to profit from the revolution in physical AI. Best of all, Wall Street has little to no idea these companies even exist, let alone their potential.
We are making just 99 copies available to the general public. To pick up yours...
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research