Eseandre Mordi
● Venture capitalist Chamath Palihapitiya recently pushed back against the idea that AI is driving today's mass layoffs. "It's convenient to blame AI," he tweeted, "but the current wave of job losses are not because of AI. It is companies unwinding ZIRP and DEI hiring excesses that left them bloated and inefficient."
● His comment comes as the Wall Street Journal reports that companies like Amazon and Target are eliminating tens of thousands of white-collar positions. These cuts are hitting both junior staff and experienced managers—roles that once represented stable middle-class careers.
● The pain is especially sharp for young people entering the workforce. In the U.K., about 1.2 million recent graduates are competing for just 17,000 job openings—the worst ratio in decades. As one observer noted on Twitter, "AI automation and hiring freezes have wiped out many entry-level roles, while universities keep producing degrees misaligned with market needs."
● The corporate logic is straightforward: with interest rates up and growth slowing, companies are cutting costs and turning to AI tools that can handle tasks like data analysis and recruiting. The era of cheap money and rapid expansion is over.
● Palihapitiya sees this as a necessary correction after years of loose hiring practices. Others believe we're witnessing something bigger—a fundamental shift where companies prioritize efficiency over headcount, and where the job market young people expected simply doesn't exist anymore.
● Either way, one thing is clear: the rules have changed, and a generation of workers is scrambling to adapt.
Eseandre Mordi
