Andrew Yang Warns of Imminent Mass Layoffs

Andrew Yang, founder of the Forward Party and a former presidential candidate, has issued a stark warning about potential mass layoffs. He predicts that automation and artificial intelligence (AI) will displace millions of white-collar workers within the next 12 to 18 months.

Warning of Imminent Mass Layoffs

In a recent Substack post, Yang emphasized a concerning trend. As companies start to reduce their workforces, he believes that this will initiate a competitive wave of layoffs across various sectors. “The stock market will reward you if you cut headcount and punish you if you don’t,” he stated.

Vulnerable Workforce

Yang specifically pointed out which groups may be most affected:

• Mid-career office workers
• Middle managers
• Call center employees
• Marketers
• Coders

He warned anyone who spends their work day at a desk in front of a computer to take these predictions seriously. “Millions of workers are about to be given their pink slips,” he cautioned.

Context of Recent Layoffs

The recent January layoffs marked the highest figures since 2009. While economic uncertainty has been a major factor, some companies are citing AI as a key reason for their staff reductions. For instance:

• Pinterest announced plans to lay off 15% of its workforce, attributing the cuts to its “AI-forward strategy.”
• HP revealed intentions to eliminate up to 6,000 jobs by 2028, also linking this to AI initiatives.

Critics argue that some organizations are exploiting AI as an excuse for job cuts. The debate continues among tech leaders. While some foresee an era of abundance due to AI, others, like Yang, advocate for preparedness against significant job losses.

The Broader Economic Impact

Yang discussed the ripple effect of these layoffs. If employees stop commuting to offices, businesses reliant on office workers, like dry cleaners or hairstylists, will likely suffer. “The amount of money getting paid to human labor is about to go down,” he emphasized, reinforcing his message about the impending challenges posed by automation.