AI Wave Triggers Tech Layoffs, 100,000 Jobs Are at Risk

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[00:00:04] Doug McIntyre: Lee, one of the things that’s happened just in the last few months is I’m starting to see real layoffs real among the mega tech guys.

[00:00:13] Doug McIntyre: I think Microsoft has announced two and then the, Wall Street Journal said they sort of did a stealth one too. Yep. And they, people are beginning to admit, the chairman of IBM (NYSE: IBM) said this three weeks ago, that AI is now affecting their ability to do coding, particularly what I would describe as lower level coding.

[00:00:33] Doug McIntyre: Yep. And who does more coding than a big tech company? I not sure. Nobody. A railroad company or somebody. Yeah. So I’m looking for lots of layoffs at these companies with AI replacements and to me that’s a margin play as an investor. Well, yeah. I mean, that are replaceable. That’s a margin play to me.

[00:00:55] Lee Jackson: Well, I have your numbers here.

[00:00:57] Lee Jackson: Microsoft, which has been doing extremely good, that laid off 6,500 people. That’s a fair amount of people. I know they have a, a ton of employees, but Meta Platforms, the stock that has exploded higher over the last two years, they laid off 5% of their workforce, and that’s 3,600 people. And of course, I know your favorite company that, is a, loss leader in the intel chip business.

[00:01:23] Lee Jackson: Intel laid off 21,000 people. And, surveys are indicating, and th this is that there will be over a hundred thousand layoffs just in the tech sector, when it’s all added up. Just over the last year or

[00:01:41] Doug McIntyre: so, listen, the worst run tech company in the universe, IBM, has done some layoffs. They say because of ai Yeah.

[00:01:49] Doug McIntyre: And they said there are more coming sell. Yep. When guys who literally, Can’t find the front door with a, their hands in a flashlight at IBM even. They’re smart enough to start. I know, So the

[00:02:03] Lee Jackson: thing is, I, this is only gonna increase. And like you said,it’s expensive to get rid of people, but only on a one time basis, and once they’re out the door and once they’re severance or whatever’s been paid, then you know, you’re home free.

[00:02:18] Doug McIntyre: I see this as a big margin play on big tech companies. Yeah. I really do. Being able to replace people, I don’t know where else it’s gonna work, but it’s working in tech

[00:02:28] Lee Jackson: Well and exponentially it’s gonna go higher. ’cause AI’s gonna get grow more.

[00:02:33] Doug McIntyre: Yeah.

[00:02:34] Lee Jackson: So if you’re, an entry-level tech guy, consider a job in welding Yes.

[00:02:38] Lee Jackson: To say goodbye. Yeah.I wouldn’t wanna be some engineer coming out now hoping for a, $200,000 a year job at. Big tech. I don’t know if it’s gonna be there forever.

[00:02:49] Doug McIntyre: Ain’t gonna happen.

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