AI layoff rethink: Goldman Sachs flags investor fatigue; predicts a shift in 2026

Investors are beginning to penalize companies for layoffs, even those framed as AI-driven efficiency. Goldman Sachs analysts report a shift where stock prices decline following such announcements, suggesting skepticism about "AI restructuring" as a cover for declining profitability. Despite this market sentiment, layoffs are still predicted to rise as firms pursue AI for cost reduction.