Are Tech and Finance layoffs accelerating because of AI advancements?

The mainstream narrative suggests that downsizings across software engineering and finance sectors are purely a pivot toward Artificial Intelligence (AI) efficiency. However, deeper analysis reveals that AI serves as a convenient corporate shield. The real catalyst is changes in the global monetary architecture.

For over a decade, the tech and financial boom was heavily subsidized by an unprecedented expansion of unbacked USD printing and historic low interest rates. This flood of cheap liquidity drastically overinflated valuations across early stage technology and financial corporations.

            AI is the perfect corporate shield. It allows executive structures to cut workforce footprints without signaling structural financial distress to public markets.
        

Historically, the debt heavy tech sector was stabilized by mutual agreement between the FED and the Bank of Japan (BOJ) via cheap Japanese Yen and by Gulf sovereign capital reservoirs. This arrangement is changing rapidly.

Today, these vital macro backstops are breaking down.

Part 2: De-dollarization & inflated valuations of IT →