Queen of Bull Market Trump supporting Wall Street CEO claims tech firms laying off workers due to AI

Hundreds of thousands of tech jobs have been cut in the last few months, yet one Trump-supporting CEO believes there’s little to be alarmed about.

Cathie Wood, CEO of ARK Invest, who became a well-known stock picker during the pandemic, believes that the layoffs are not a sign of a struggled within the industry but more a case of new technologies including AI being used to streamline companies.

More than 77,000 workers in U.S.-based tech companies including Amazon, Apple, Dell, IBM, and Zoom, have been laid off in mass job cuts so far in 2023 and the year is just getting started.

That number includes Dell’s 6,650-person cut and Zoom’s 1,300-person layoff announcements last week.

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

Cathie Wood, CEO of ARK Invest says the layoffs in the tech sector should not be seen as a sign of trouble for the industry but companies optimizing their workforce

Last year, more than 140,000 jobs were slashed from public and private tech companies as they were forced to confront rising inflation and a tumultuous stock market.

But Wood believes 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 technology sector in some kind of disarray or sunsetting in some way or the opposite. We think they’re harnessing new AI tools and other technologies to increase productivity and provide new products and services,’ Wood said to Fox Business.

Wood explained that so many tech firms overhired during the pandemic and now need to make adjustments in their personnel through layoffs with companies essentially optimizing their workforce. 

The technology sector has seen the most significant layoffs making up 41 percent of planned reductions – meanwhile retailers and financial companies will also see substantial changes

More than 102,000 employees are set to lose their jobs after U.S. businesses announced some of the most brutal job cuts since 2020, new data found

‘Many of these technology companies had had to gear up to handle COVID, and they did a beautiful job. I mean, Zoom, what it did, going 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 technology feats we’ve seen in quite some time,’ Wood said. 

Wood also says that she believes the job cuts are linked to the new opportunities presented by AI and its potential for increased productivity.

‘Of course, now we’re seeing the opportunity with AI for productivity gains. That’s one of the primary opportunities associated with AI for traditional companies. And so we think companies need to increase their productivity, and maybe they went a little bit too far hiring as they were trying to address all the needs that COVID presented,’ she said.

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

Wood believes AI will present new opportunities for productivity gains and predicts that by 2030, Amazon may even have more robots than human employees. Pictured, Sparrow, Amazon’s new intelligent robotic system

Amazon currently has over 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 the year 2030, Amazon can have more robots than employees.’

Despite the job cuts, Wood remains optimistic about the future of the tech industry which she believes is ‘at the dawn of the robotics age.’ 

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 $60 billion (assets) ARK Invest, which invests in innovations like self-driving cars and genomics