đš 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 â the highest since the pandemic.
600,000 came in just the first two months of 2026.
Major reductions:
âą U.S. Government: 317K
âą UPS: 78K
âą Amazon: 30K
âą Intel: 25K
âą Citigroup: 20K
âą Nissan: 20K
âą Microsoft: 15K
âą Verizon: 13K
âą Accenture: 11K
âą Salesforce: 4K
âą Block: 4K
A growing share is explicitly tied to AI: smaller teams, same output.
Hereâs the macro risk:
The U.S. economy runs on high-income consumption. Replacing $150Kâ$200K jobs with software boosts margins â 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 â long-term demand weakens.
You can get:
Higher productivity
Stronger earnings
But falling broad participation
Thatâs how you build a ghost economy â 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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