The Decibel The first wave of AI layoffs
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Sep 3, 2025 Join Joe Castaldo, an AI reporter for The Globe, and Sean Silcoff, a technology reporter, as they unpack the seismic shifts AI is bringing to the job market. They explore how companies are not only embracing AI for efficiency but also grappling with significant layoffs, particularly in programming and customer service. The duo dives into the challenges of integrating AI, the evolving roles of employees, and what the future holds for job security amidst this technological revolution.
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Clue Labs' Radical Refounding
- Clue Labs' CEO Jason Smith decided not to refill a vacated role and instead rebuilt workflows with AI, then cut about 40% of staff.
- He framed it as refounding the company AI-first to avoid repeated quarterly layoffs and stay competitive.
Carrot And Stick For AI Adoption
- CEOs now use both incentives and threats to push AI adoption inside firms, urging employees to become AI proficient.
- Executives warn that failing to use AI can lead to replacement by someone who can use it.
Preemptive Move Against AI-Native Rivals
- Jason Smith feared emerging AI-native startups that grow with fewer hires, so he acted preemptively to restructure Clue Labs.
- He preferred one large cut now rather than periodic layoffs that would hurt morale.