WSJ What’s News

Episode Title: How AI is Tearing Through The White-Collar Workforce
Date: October 29, 2025
Host: Caitlin McCabe
Guests: Nick Timoros (WSJ Chief Economics Correspondent), Inti Pacheco (WSJ Data Reporter), Chip Cutter (WSJ Workplace Reporter)

Episode Overview

This episode dives deep into the complex forces reshaping today's white-collar workforce, with a primary focus on how artificial intelligence (AI) is driving corporate layoffs and changing traditional hiring dynamics in major U.S. companies. The segment also covers the latest numbers on global billionaires, the Federal Reserve's decision context amid limited economic data, and brief updates on world news.

Key Discussion Points & Insights

1. Federal Reserve’s Rate Decision Amid Data Blackout

• The absence of key economic data due to a government shutdown has complicated the Fed's decision-making process and forward guidance.

• Nick Timoros explains that typically, robust data would reconcile disagreements within the rate-setting committee, but with missing jobs reports and other indicators, uncertainty is heightened.

  “Because of the government shutdown, the Fed has been robbed really of the information that would help reconcile this debate. And so that's why this is a weird situation…”
  — Nick Timoros [01:31]

• The market expects a December rate cut, but split opinions remain within the Fed.

  “Once the Fed starts cutting, they need to see a reason to not cut. And certainly the markets are expecting another rate cut in December.”
  — Nick Timoros [03:49]

2. Trump and the Third Term: Political Maneuvering

• President Trump acknowledges constitutional limitations preventing a third term, despite his allies pushing for legal changes.

• There are ongoing moves by certain supporters, including proposed constitutional amendments, to open a more extended run for Trump.

  “‘If you read it, it's pretty clear I'm not allowed to run, adding that, ‘it's too bad.’”
  — Reporting on Trump’s comments [04:32]

3. Billionaire Boom and Market Volatility

• Inti Pacheco details how the U.S. has the highest number of billionaires, primarily due to the technology and AI boom.

  “The technology sector is the one that keeps growing in multiples, and that's been boosted by the recent AI boom.”
  — Inti Pacheco [06:53]

• Europe overtakes Asia as the second top region for billionaires, but volatility means fortunes can vanish quickly.

  "If you have a billion or 2 billion next year, you might not have a billion at all...the way to be sure that you stay a billionaire is you need at least 4.5 billion because market volatility, companies get sold. Things change very quickly."
  — Inti Pacheco [07:26]

4. AI and the White-Collar Workforce: Layoffs and Lean Staffing

• Recent major layoff announcements at Amazon, UPS, Target, and Booz Allen Hamilton are tied, in part, to AI adoption.

• Chip Cutter highlights a shift: companies aim to boost profits without hiring more staff, believing AI can fill the gap.

  "This is an interesting moment in corporate America where many big executives are looking to increase sales, they want to increase profits, but they actually don't want to add any people."
  — Chip Cutter [09:30]

• Executives from JPMorgan Chase, RTX, Goldman Sachs, and Walmart have all expressed intentions to maintain or shrink headcount while pursuing growth.

  "[JPMorgan Chase's CFO] telling investors...the bank has, ‘a very strong bias against having the reflective response to hire more people for any given need.’"
  — Chip Cutter [09:30]

• A cultural shift at companies like Meta, where the AI chief stated:

  "By reducing the size of our team, fewer conversations will be required to make decisions, and each person will be, ‘more load bearing and have more scope.’"
  — Chip Cutter [10:46]

5. Consequences for Employees

• The labor market is tough: few companies are hiring, and those who remain employed are working harder, often doing jobs previously held by multiple people.

• Many workers feel "stuck," with increased responsibilities and little hope for promotion.

  “For employees, this is a really difficult labor market to navigate...those people who have a job are really just looking to hold on. They might be taking on the roles of multiple employees at this point...that's leading many to feel a little bit miserable in the workplace right now.”
  — Chip Cutter [11:23]

Notable Quotes and Moments

• "If you have a billion or 2 billion next year, you might not have a billion at all."
  — Inti Pacheco [07:26]

• "There's this mood right now across corporate America to just essentially do anything but hire."
  — Chip Cutter [09:30]

• "By reducing the size of our team, fewer conversations will be required to make decisions, and that each person will be, ‘more load bearing.’"
  — Meta AI chief, via Chip Cutter [10:46]

• "Many to feel a little bit miserable in the workplace right now.”
  — Chip Cutter [11:23]

Timestamps for Key Segments

• [00:57] - [04:25]: Fed Rate Decision with Nick Timoros: Data challenges, divided committee, market expectations
• [04:30] - [06:53]: Trump’s third-term prohibition, political moves, shakeups in DC agencies
• [06:53] - [08:02]: Billionaire statistics, shift in billionaire geographies, volatility
• [08:54] - [11:15]: AI’s role in layoffs, changing corporate staffing philosophy, direct company examples
• [11:15] - [11:58]: Employee reaction and morale, difficult labor market impacts

Overall Tone and Takeaway

The episode is brisk, factual, and laced with caution regarding the real-world impact of AI on white-collar jobs. While executives tout the efficiency and reduced bureaucracy of smaller teams aided by AI, there's a clear undercurrent of anxiety and difficulty for employees trying to adapt or survive amid rapidly shifting corporate priorities. The discussion threads together macroeconomic policy, rising wealth inequality, and technological disruption, showing how intertwined these issues are in today’s workplace.