The Decibel The first wave of AI layoffs
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Sep 3, 2025 Join Joe Castaldo, an AI reporter for The Globe, and Sean Silcoff, a technology reporter, as they unpack the seismic shifts AI is bringing to the job market. They explore how companies are not only embracing AI for efficiency but also grappling with significant layoffs, particularly in programming and customer service. The duo dives into the challenges of integrating AI, the evolving roles of employees, and what the future holds for job security amidst this technological revolution.
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Carrot And Stick For AI Adoption
- CEOs now use both incentives and threats to push AI adoption inside firms, urging employees to become AI proficient.
- Executives warn that failing to use AI can lead to replacement by someone who can use it.
Preemptive Move Against AI-Native Rivals
- Jason Smith feared emerging AI-native startups that grow with fewer hires, so he acted preemptively to restructure Clue Labs.
- He preferred one large cut now rather than periodic layoffs that would hurt morale.
AI Replaces Average Human Work
- CEOs expect AI outputs to be roughly average compared with human workers today, but sufficient for many tasks.
- That expectation makes companies comfortable replacing or not hiring for some roles.