Layoffs due to AI are no longer making Wall Street and investors happy, says Goldman Sachs; and also makes a prediction for 2026
Investors are beginning to penalize companies for layoffs, even those framed as AI-driven efficiency. Goldman Sachs analysts report a shift where stock prices decline following such announcements, suggesting skepticism about "AI restructuring" as a cover for declining profitability. Despite this market sentiment, layoffs are still predicted to rise as firms pursue AI for cost reduction.
Investors are beginning to penalize companies for layoffs, even those framed as AI-driven efficiency. Goldman Sachs analysts report a shift where stock prices decline following such announcements, suggesting skepticism about "AI restructuring" as a cover for declining profitability. Despite this market sentiment, layoffs are still predicted to rise as firms pursue AI for cost reduction.
