Former presidential candidate and Noble Mobile CEO Andrew Yang warns that white-collar workers will be hardest hit as companies adopt AI.
In a new Fox Business interview, Yang says the market’s response to reports of layoffs is giving CEOs the conviction and incentive to announce AI-driven job cuts.
“This transition is going to be brutal with a capital B for hundreds of thousands of white-collar workers… I talked to a tech CEO of a publicly traded company, and this has not been announced. He said they’re going to fire 15% of their workers now, 20% in two years and 20% more two years later.
And he said, ‘After that, we don’t know.’
If you do the math, that’s about half of his employees gone. So this is going to play out in company after company, because the managers are getting rewarded. The stock’s going up, not down, when they announce, ‘Look, we’re going to be cutting our workforce.'”
Just last month, Jack Dorsey announced that Block will lay off 4,000 employees to create leaner and more productive teams using intelligence tools. Shares of the financial services firm (XYZ) exploded by 20% in after-hours trading following the news.
According to Yang, the trend is starting to show up in youth underemployment data.
“And you can see it in the underemployment numbers for recent college graduates, particularly those with computer science degrees. They’re not getting these jobs.”
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