Why AI layoffs aren't paying off for stocks

• Over 112,000 US jobs have been lost to AI since the start of 2025, with an MIT study suggesting AI could replace 11.7% of the US workforce, potentially saving $1.2 trillion in wages.
• CNBC analyzed 23 publicly-listed firms with AI-driven layoffs, finding 52% traded in the red since their layoff announcements (as of May 8, 202X).
• The average stock decline for companies with AI-driven layoffs was 28%, compared to only 27% of S&P 500 companies trading in the red since ChatGPT's launch in November 2022.

The video analyzes the stock performance of companies that announced AI-driven layoffs, finding that over half of these firms have seen their stock prices decline. Despite companies framing these cuts as efficiency boosts, investors appear unconvinced, with an average stock loss of 28% for affected companies, significantly underperforming the broader S&P 500 since ChatGPT's launch.