GOLDMAN SACHS WARNS THAT LAYOFF WAVES ARE INCREASING AND THE MARKET IS "PUNISHING" COMPANIES

🔸 Goldman Sachs forecasts that layoffs will continue to rise as companies use AI and automation to cut costs.

🔸 Unlike before, stocks now often decline after layoffs are announced, even when explained as strategic restructuring.

🔸 Goldman states that stocks of companies announcing layoffs typically decrease by about 2%, with larger declines associated with restructuring.

🔸 Although CEOs say layoffs due to AI are positive, the market increasingly views this as a negative signal for growth.

🔸 Companies reducing staff tend to have higher debt, increased interest expenses, and weaker profit growth compared to their competitors.
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