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If we continue to strip away vital support systems—whether through mass layoffs, corporate greed, or government neglect—we are poisoning the waters we all rely on.
The economy is like the ocean—both rely on a healthy foundation to thrive. Just as the ocean's ecosystems depend on clean waters and balance at its depths, the economy needs a strong, stable base—workers, industries, and resources that function properly at the ground level. If the ocean floor becomes polluted, it disrupts the entire ecosystem, causing the waters above to suffer. Likewise, when the foundations of the economy are neglected—through inequality, corruption, or unsustainable practices—the effects ripple upward, leading to broader instability, high unemployment, and deepening inequality, making it increasingly difficult for ordinary people to stay afloat.
A clear example of this is when mass layoffs of government workers occur. Governments play a key role in maintaining infrastructure, social services, and public sector employment, which support the economy at large. When governments reduce their workforce through austerity measures or budget cuts, the immediate consequences affect the foundational services people rely on—healthcare, education, public safety, and more. These cuts often lead to decreased economic activity in local communities, as government workers are consumers themselves, spending on goods and services. Moreover, when government employees lose their jobs, the ripple effects can harm the private sector, as unemployment rises and consumer demand falls, further destabilizing local economies. The loss of these vital workers often undermines the very systems that hold society together, from the safety nets that protect the vulnerable to the systems of governance that enable economic stability.
Much like a polluted ocean, neglecting the "depths" of the economy—whether through environmental degradation, mass reductions in vital services, or economic policies that favor the wealthy over everyday people—ultimately pollutes the economic waters above. By weakening the economy's foundations, mass layoffs and economic instability erode confidence in the system, resulting in diminished growth, further instability, and a more fractured society. Both ecosystems—natural and economic—are delicate, requiring careful, long-term stewardship to avoid collapse and ensure prosperity for future generations.
Just as we fight for environmental protections to sustain our planet, we must fight for policies that sustain economic stability and fairness.
I understand this reality firsthand. As someone who experienced homelessness while raising a child, I've seen what happens when economic policies fail the most vulnerable. Losing stable housing wasn't just a personal hardship—it was a direct consequence of a system that prioritizes short-term profits over long-term stability. The economic ocean had already been polluted, and I was caught in the current, struggling to survive in a world that often overlooks those in need. I faced the consequences of an economy that fails to support its most essential workers, the ones who are too often invisible in the greater economic landscape.
During the Covid-19 pandemic, I witnessed another failure of economic stewardship. Many homeless individuals had no information about the virus, no access to protective measures, and no healthcare support. My daughter and I took it upon ourselves to educate and distribute resources to those left behind. Later, while filming my docuseries In Correspondence With Eric Protein Moseley, a spin-off of Homeless Coronavirus Outreach, I contracted Covid-19 myself. I was fortunate to receive care from St. Jude Center—Park Central and Catholic Charities Dallas, but my experience further solidified the urgency of healthcare and economic policies that serve everyone—not just the privileged. It became clear to me that a system that neglects its most vulnerable citizens will ultimately collapse under the weight of its own inequities. The pandemic illuminated the deep cracks in our social systems, with those at the bottom facing the greatest hardships and suffering the most severe consequences.
The current economic landscape shows us that public resources must be protected, not gutted. Economic justice and environmental justice go hand in hand. If we continue to strip away vital support systems—whether through mass layoffs, corporate greed, or government neglect—we are poisoning the waters we all rely on. Those at the bottom will feel the effects first, but soon enough, the instability will reach every level of society, affecting businesses, communities, and entire nations. This instability doesn't just threaten the most vulnerable, but the entire fabric of society itself. When the foundations weaken, it's only a matter of time before the entire structure is compromised.
We cannot afford to let the ocean of our economy become toxic. Just as we fight for environmental protections to sustain our planet, we must fight for policies that sustain economic stability and fairness. We need long-term solutions, not short-term cuts that deepen inequality and erode trust in the system. If we fail to act now, the waves of economic instability will continue to crash down, leaving millions struggling to stay afloat and threatening the future prosperity of us all. Our failure to protect the foundations of the economy will not only harm those already at the bottom—it will have consequences for all of us, as the ripple effects of neglect reach every part of society. The time to act is now—before the waters of economic injustice drown us all.
The message these tactics send is clear: Decades of public service experience can be dismissed in minutes if an AI system suggests your role is redundant.
Earlier this month, software firm Workday announced that it would be laying off more than 1,700 workers—or about 8.5% of its workforce—to redirect investment toward artificial intelligence. The announcement was the latest in a series of mass layoffs that have put hundreds of thousands of workers at Amazon, Intel, Microsoft, and other tech companies out of work over the past several years. Google and Meta are among the tech giants that have cited the need to invest resources in AI development as the reason for cutting jobs. AI is also a part of the rationale behind the raft of mass federal employees layoffs.
Much of the narrative about AI and jobs has focused on the threat of automation: What can AI do as well as—or better than—humans? Research on AI-driven job displacement often focuses on forecasting which jobs or tasks machines could perform in the future, and then estimating how many workers might be displaced due to this automation. A report might tell us that 30% of work hours could be automated by 2030, or a study might predict that 5% of work tasks across the economy could be performed by AI in the next 10 years.
While automation is a risk that needs to be understood and taken seriously, this framing misses a key aspect of what's happening in the economy now. After many tech firms overhired during the pandemic, companies are cutting jobs and investing in AI not to directly replace workers with machines, but to signal to investors that they're focused on future growth and profitability.
Fortunately, workers and unions are fighting back, both against AI-driven job displacement in private industry and against DOGE's attempts to dismantle the public service.
Mass layoffs are nothing new. As Les Leopold argues in his book Wall Street's War on Workers, for decades corporations have carried out mass layoffs not out of fiscal desperation, but as part of a strategy to further enrich wealthy shareholders through stock buybacks and leveraged buyouts. But now we are seeing how AI hype has become the latest justification for firing workers en masse. Tech firms aren't waiting around to see what roles AI can and can't replace before laying workers off. Instead, they're slashing jobs and redirecting resources to AI initiatives because the mere promise of AI-driven efficiency is enough to excite investors and drive up stock prices.
This strategy creates a self-fulfilling prophecy where tech firms devalue human labor to make automation seem inevitable. By carrying out mass layoffs, tech firms signal to investors and workers themselves that workers are replaceable. By reinvesting those resources in AI, firms make it more likely that AI will eventually become capable enough to replace the workers they already decided to eliminate.
The strategy of hyping AI to justify mass layoffs is exemplified by Swedish tech firm Klarna. As Noam Scheiber reports in The New York Times, when the company laid off 700 customer service workers last year, CEO Sebastian Siemiatkowski didn't just announce the cuts—he celebrated them. In media appearances and investor calls, Siemiatkowski proudly predicted that the company's workforce would eventually shrink to less than half its size thanks to AI-enabled productivity gains. As Scheiber reports, Siemiatkowski may even have overstated Klarna's progress in automating jobs to try to make the company more appealing to investors. For example, while the CEO claimed that AI enabled the company to become so efficient that it halted all new hiring a year and a half ago, journalists have found that the company continues to post job listings for vacant positions. The Klarna example shows how, for some companies, automation isn't just about replacing workers with machines; it is about redefining human labor as a temporary necessity to be tolerated until AI makes it obsolete. Like many tech firms, Klarna is betting that by hyping AI's potential while disinvesting in workers, they can make their vision of an automated future into a self-fulfilling prophecy.
Elon Musk's so-called Department of Government Efficiency( DOGE) is now bringing the AI-fueled mass layoff strategy to the federal government. Through DOGE, Musk and his allies are experimenting with AI tools "to identify budget cuts and detect waste and abuse," in agencies like the Department of Education and the General Services Administration (GSA). Staffers report that DOGE aims to reduce GSA's budget by up to 50%. As The Washington Post reports, "DOGE associates have been feeding vast troves of government records and databases into artificial intelligence tools, looking for unwanted federal programs and trying to determine which human work can be replaced by AI, machine-learning tools, or even robots." In other words, Musk is exploring how he can use AI as justification for carrying out mass layoffs across the federal government. The message these tactics send is clear: Decades of public service experience can be dismissed in minutes if an AI system suggests your role is redundant.
The DOGE-led mass layoffs are part of a decades-long conservative project of shrinking the federal workforce and weakening the administrative state. But what's new is how AI hype, and the guise of Silicon Valley efficiency, is being used to add a veneer of technological inevitability to this political project. "The federal government is suddenly being run like an AI startup," writes Kyle Chayka in a recent piece in The New Yorker. When DOGE staffers cite AI assessments as justification for eliminating positions, they're following the same playbook as tech CEOs: using speculative claims about AI capabilities to make workforce reduction seem like an unavoidable consequence of progress rather than a deliberate choice. DOGE's promises of AI-driven efficiency mask the reality that many government functions still require human judgment, institutional knowledge, and public service experience that no algorithm can replace. This combination of hostile management and AI hype isn't just about cutting costs—it's about redefining public service as something that can be evaluated by an algorithm and eliminated at the whims of a tech oligarch.
Fortunately, workers and unions are fighting back, both against AI-driven job displacement in private industry and against DOGE's attempts to dismantle the public service.
Workers are successfully using collective action to establish guardrails around AI usage and ensure technology serves rather than replaces human labor. The nearly five-month strike by the Writers Guild of America (WGA) and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) in 2023 was motivated in large part by concerns that Hollywood studios would seek to use AI in ways that undermine workers or replace them altogether. SAG-AFTRA and WGA eventually won contracts that established frameworks for how studios can and cannot use AI during the production process, ensuring that AI cannot replace human writers and actors without their consent and fair compensation. As labor journalist Alex Press reports, similar fights have played out across workplaces in the hospitality, tech, and logistics industries. Through effective strikes and collective bargaining, workers can influence how AI is implemented in the workplace, and secure protections against mass layoffs.
Unions representing federal employees are also mounting a host of legal challenges to protect workers and preserve government services. The American Federation of Government Employees (AFGE) and several other unions filed suit to block what it called "arbitrary and capricious" job cuts laid out in the Trump administration's federal worker buyout program. Meanwhile, the National Treasury Employees Union, which represents workers at the Consumer Financial Protection Bureau, has filed a lawsuit challenging Trump's directive to halt the bureau's operations, which the union alleges violates the constitutional separation of powers. While not directly a response to DOGE's use of AI, the lawsuits show how unions are taking action to oppose efforts to weaken federal agencies and devalue the work of career civil servants. As DOGE looks to use AI to justify mass layoffs, these lawsuits could establish important legal precedents to help protect workers from arbitrary dismissal based on algorithmic assessments.
Recent job cuts in the tech sector and in the federal government show how AI hype is being used to justify mass layoffs. Through collective action, workers are showing that AI's impact isn't predetermined by technology—it can be shaped through worker power.
This article first appeared on Power at Work and is republished here with permission.
"This order is the equivalent of putting on a blindfold and smashing everything, without knowing what you're destroying or how many people it hurts," said one journalist.
U.S. President Donald Trump escalated his wholesale assault on the federal government and its workforce on Wednesday by ordering agencies to submit plans for mass firings by March 13 as the destructive impacts of the new administration's onslaught ripple across the country.
The president's order came in the form of a memo from the Office of Management and Budget (OMB)—headed by Project 2025 architect Russell Vought—and the Office of Personnel Management, an agency overtaken by lieutenants of billionaire Elon Musk.
Citing Trump's call for "large-scale reductions in force" across the federal government, the memo states that agencies "should focus on the maximum elimination of functions that are not statutorily mandated while driving the highest-quality, most efficient delivery of their statutorily-required functions."
"Agencies should also seek to consolidate areas of the agency organization chart that are duplicative; consolidate management layers where unnecessary layers exist; seek reductions in components and positions that are non-critical; implement technological solutions that automate routine tasks while enabling staff to focus on higher-value activities; close and/or consolidate regional field offices to the extent consistent with efficient service delivery; and maximally reduce the use of outside consultants and contractors," the memo adds.
HuffPost reporter Jennifer Bendery characterized the new memo as consistent with the wrecking-ball approach that Trump and Musk have taken over the past month as they've moved aggressively to eviscerate federal departments and funding, running roughshod over the law in the process.
"This order is the equivalent of putting on a blindfold and smashing everything, without knowing what you're destroying or how many people it hurts," Bendery wrote on social media.
Kevin Owen, an employment lawyer who represents federal workers, toldThe Associated Press that the latest memo from OMB and OPM "looks like a plan for a significant and shocking reduction of the federal workforce that I don't think the American people are prepared for."
"It's going to cripple a lot of government functions," Owen warned.
"Musk is failing up in this administration because he didn't earn his job, he bought it. It's corrupt, and risks Americans' health and safety."
The order came as communities across the country grappled with the consequences of the Trump administration's mass terminations of federal workers and illegal withholding of funds approved by Congress, which is now in the grip of a GOP that has proven subservient to the president.
The federal government is the single-largest employer in the United States, and Trump and Musk's effort to gut entire departments could have far-reaching and devastating economic impacts.
The Washington Postreported earlier this month that "the Trump administration's move to fire thousands of federal employees could have a swift and severe impact on public services... making it harder for veterans to get mental healthcare and hampering electric service to some rural residents as a beleaguered workforce struggles to cover for lost colleagues."
"In an Energy Department subagency that helps provide power, staff who handled homeowners' electricity bills were fired, employees said, potentially leaving no one to take the money that keeps their lights on," the newspaper added. "In one state, all but two of the employees who helmed an Agriculture Department program assisting poor rural communities were fired. And in a tiny Wyoming town, a Forest Service office that has spent decades providing support to hikers, Christmas tree permits to residents, and firewood for the elderly has been forced to shutter, a staffer said."
In some cases, the Trump administration has rushed to rescind terminations after employees responsible for food safety reviews, the federal bird flu response, and nuclear security were caught up in the mass firings—accidentally, the administration claims. Some federal employees have been reinstated by court order.
During the first Cabinet meeting of the second Trump administration on Wednesday, Musk—who is not a Cabinet official—admitted that his so-called Department of Government Efficiency "accidentally" canceled Ebola prevention efforts as it worked to dismantle the U.S. Agency for International Development (USAID).
Rep. Don Beyer (D-Va.), who represents many federal workers, wrote in response that "an average person who did something as incompetent as 'accidentally canceling Ebola prevention' wouldn't be applauded, they'd be fired."
"Musk is failing up in this administration because he didn't earn his job, he bought it," Beyer added. "It's corrupt, and risks Americans' health and safety."