Layoffs due to AI are no longer making Wall Street and investors happy, says Goldman Sachs; and also makes a prediction for 2026
Layoffs can be called as one of the ‘biggest’ words of 2025. Companies across sectors cut jobs. Some reasoned them on automation and some on restructuring or other factors. However, according to Goldman Sachs analysts, the era of Wall Street rewarding companies for cutting staff in the name of artificial intelligence may be coming to an end. A new report from Goldman Sachs analysts reveals a significant shift in market sentiment: Investors are beginning to punish firms that announce layoffs, even when those cuts are framed as strategic pivots toward automation and technological efficiency.
