Goldman Sachs Warns: Wall Street Losing Patience with AI-Driven Job Cuts

• Wall Street's stance on "AI Layoffs" has reversed; companies announcing job cuts now see stock prices fall, not rise.
• Goldman Sachs analysis reveals an average 2% stock drop post-layoff announcements, signaling investor skepticism.
• Investors now interpret AI-justified job cuts as underlying weakness rather than strategic transformation or efficiency.
• Klarna's CEO Sebastian Siemiatkowski's reversal on automation highlights the importance of human involvement for brand quality.
• Goldman Sachs predicts continued layoffs into 2025-2026, as companies pursue AI-driven cost reductions despite market disapproval.

Why It Matters: Wall Street no longer rewards AI-justified layoffs, viewing them as weakness rather than strategic transformation.