CEOs boast about AI-driven layoffs as shareholders cheer

Company CEOs are openly boasting about replacing “more expensive” humans with “cheaper” artificial intelligence, while shareholders celebrate.

The latest example came from Salesforce CEO Marc Benioff, who said on The Logan Bartlett Show podcast that AI had eliminated 4,000 customer service jobs.

In June, Benioff stated that AI was doing 50% of the work at Salesforce. Yesterday, the company, seeking to boost efficiency by downsizing, reported second-quarter results that exceeded expectations on both revenue ($10.24 billion versus $10.14 billion) and earnings per share ($2.91 versus $2.78). However, weak forecasts for the third quarter pushed shares down in after-hours trading.

Wells Fargo’s CEO also boasted about cutting the workforce for 20 consecutive quarters. The company’s shares have gained 228% in value over the past five years.

Bank of America CEO Brian Moynihan said during the latest earnings call that the bank had laid off 88,000 workers over the past 15 years. BofA shares have risen 95% since 2020.

Amazon, whose share price rose 28% last year, recently told employees that AI applications would lead to layoffs.

Microsoft has cut 15,000 jobs in the past two months during its AI transition, and its stock has climbed since early July.

Companies using AI to maintain profitability are also keeping investors happy.

According to HR Dive, 34% of CEOs plan to conduct layoffs in the next 12 months, marking five straight quarters of increases.

Molly Kinder, a senior fellow at Brookings and an expert on AI and the future of work, told The Wall Street Journal that she did not think this was “good news for American workers.”

A report published last month in WSJ noted that CEOs now openly brag about staff cuts, highlighting both a cooling job market and their unwavering commitment to automation at all costs.

For example, Verizon CEO Hans Vestberg told investors that the telecom sector was “very, very good” in terms of headcount, meaning “steadily shrinking.”

Zack Mukewa, a strategic advisor at Sloane & Co, told the paper: “Being candid about cost and headcount isn’t just permitted, it’s rewarded,” adding that shifting attitudes toward workforce reductions have become “a powerful reframing tool.”

According to WSJ, simply put, laying off “human workers” has become a perverse point of pride among top executives. While continuing to dismiss thousands of employees, they are simultaneously pouring major investments into AI technology.