They're Firing Everyone and Getting Rich From It (Video)
In this 29 November 2025 video, host Michael Bordenaro talks about how employers are starting to fire people due to a combination of factors including a shift from post-pandemic “labor hoarding” to cost-cutting, economic uncertainty, and increased efficiency through automation and AI. Companies are laying off workers to reduce payroll costs, streamline operations, and focus on core business projects, especially as the economy slows and demand normalizes after a period of over-hiring.
Reasons for recent layoffs
Economic uncertainty and cost-cutting:
- Companies that over-hired during the pandemic are now cutting staff to reduce costs as economic growth slows and demand stabilizes.
- Some are making cuts in profitable years to safeguard profits and prepare for a potential downturn.
- External factors like tariffs are also cited as reasons for operational cost increases, leading to layoffs.
Efficiency and automation:
- A major driver for job cuts is the increasing reliance on AI and other automation technologies that can perform tasks previously done by humans.
- Some companies are re-evaluating their workforce composition, laying off employees in less critical roles to hire for more strategic positions.
Changes in business strategy:
- New leadership can lead to a shift in priorities, sometimes resulting in layoffs to undo the previous administration’s initiatives.
- Projects that are not deemed profitable or strategic may be cancelled, leading to layoffs for the employees on those projects.
Individual performance issues:
- Mass layoffs can be a way to remove a larger number of underperforming employees more quickly than through individual performance management, though this is distinct from a mass layoff due to economic factors.
https://youtu.be/ZdmokxVhmc4
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