Queen of Bull Market Trump, Who Supports Wall Street CEO, Claims Tech Firms Lay Off Workers Because of AI

Hundreds of thousands of tech jobs have been cut in recent months, yet one pro-Trump chief executive believes there is little to be alarmed about.

Cathie Wood, the chief executive of ARK Invest, who became a renowned stock picker during the pandemic, believes the layoffs are not a sign of fighting within the industry, but rather a case of new technologies, including AI, that are used to optimize companies.

More than 77,000 workers at US-based tech companies, including Amazon, Apple, Dell, IBM and Zoom, have been laid off in massive job cuts so far in 2023 and the year is just beginning.

That number includes the layoff of 6,650 people from Dell and the layoff announcements of 1,300 people from Zoom last week.

Among these companies, Google, Microsoft, Meta and Amazon have experienced the most layoffs, with at least 10,000 job cuts this year to date.

Last year, more than 140,000 jobs were shed at public and private tech companies as they were forced to deal with rising inflation and a tumultuous stock market.

But Wood believes that tech companies are now using these layoffs as a means to increase productivity and efficiency through the integration of new AI tools and technologies.

“We don’t think this is the tech sector in some kind of mess or sunset in some way or the other way around. We believe they are leveraging new AI tools and other technologies to increase productivity and provide new products and services,” Wood told fox business.

Wood explained that many tech companies overhired during the pandemic and now need to adjust their staff through layoffs with companies essentially optimizing their workforce.

The technology sector has seen the most significant layoffs accounting for 41 percent of planned reductions; meanwhile, retailers and financial companies will also see substantial changes.

More than 102,000 employees will lose their jobs after US companies announced some of the most brutal job cuts since 2020, according to new data.

‘A lot of these tech companies had to prepare to handle COVID, and they did a beautiful job. I mean, Zoom, what it did, go from 20 million users to 200 million users in a year to 18 months, the technology to accommodate that, being able to do that was probably one of the greatest technological feats we’ve seen in quite some time. time,” Wood said.

Wood also says that he believes the job cuts are related to the new opportunities presented by AI and its potential to increase productivity.

“Of course, now we are seeing the opportunity with AI to increase productivity. That is one of the main opportunities associated with AI for traditional companies. So we think that companies need to increase their productivity, and maybe they went a little too far in hiring, as they were trying to address all the needs that COVID presented,” he said.

Wood believes that AI will present new opportunities to increase productivity and predicts that by 2030, Amazon may have even more robots than human employees.

Wood believes that AI will present new opportunities to increase productivity and predicts that by 2030, Amazon may have even more robots than human employees. In the image, Sparrow, Amazon’s new intelligent robotic system

Amazon currently has more than 520,000 robots in use.

“Amazon is adding about a thousand robots a day,” Wood said last week. “If you compare the number of robots Amazon has to the number of employees, it’s about a third. And we believe that by 2030, Amazon may have more robots than employees.”

Despite the job cuts, Wood remains optimistic about the future of the tech industry, which he believes is “at the dawn of the robotics era.”

She believes that innovations in AI and other technologies such as robotics, AI, and battery technology will continue to create new opportunities.

Cathie Wood is a star stock picker and founder of the $60 billion (assets) ARK Invest, which invests in innovations like driverless cars and genomics.