Neil Patel argues that AI companies announcing layoffs are the ones already struggling, not thriving. The fastest-growing AI stocks like MU and Scandus are avoiding cuts, while struggling firms use efficiency narratives to justify them. Claims about massive productivity gains from AI are often cover stories for companies under pressure.
Or what percentage of them do you think that are doing layoffs? Are we talking about the Magnificent 7? Yeah, no, I'm talking about the ones that are gaining the most traction from a stock price, which is mainly all the AI companies. Yeah, I don't think many of them are. And there's been a counterargument to this. If you look at the companies that are booming the most, like MU, you know, Scandus, and the list goes on and on. Eric also shared me a list with all the AI stocks that are booming. And if you just look at all those companies, most of them are not doing layoffs. Just in general, the companies that are growing the fastest in the public markets, most of them are not talking about layoffs at all. It's the companies that are struggling that are doing the layoffs, and they're coming up with different narratives. I'm not saying the 100x employee isn't true, or the 1,000x, or the 10x, or even 5x, because even if you double the employees' efficiencies, That has huge impacts on our organization, but I think a lot of the companies that are pushing out this narrative are struggling in some way, and they're looking to pivot and make changes. I'm not saying these changes are bad or good. I'm just saying they have no choice but to make changes because of the position they're in.
