🚹 THIS IS CONCERNING: THE AI LAYOFF CYCLE IS COLLIDING WITH THE CONSUMER ECONOMY

Over 1.17M U.S. job cuts were announced in the past year — the highest since the pandemic.

600,000 came in just the first two months of 2026.

Major reductions:

‱ U.S. Government: 317K

‱ UPS: 78K

‱ Amazon: 30K

‱ Intel: 25K

‱ Citigroup: 20K

‱ Nissan: 20K

‱ Microsoft: 15K

‱ Verizon: 13K

‱ Accenture: 11K

‱ Salesforce: 4K

‱ Block: 4K

A growing share is explicitly tied to AI: smaller teams, same output.

Here’s the macro risk:

The U.S. economy runs on high-income consumption. Replacing $150K–$200K jobs with software boosts margins — but shrinks the income base that buys homes, cars, travel, SaaS, fintech, and credit products.

Second-order effect:

The same companies cutting workers sell to those workers.

Short-term profits rise → long-term demand weakens.

You can get:

Higher productivity

Stronger earnings

But falling broad participation

That’s how you build a ghost economy — output grows while the customer base underneath erodes.

The key variable now: whether the labor market can absorb the transition before demand starts cracking.

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