Podcast Summary: Your Money Minute

Episode: “Attrition Is The Secret Job Cut Weapon”

Date: February 25, 2026
Host: Jessica Ettinger (CNBC)
Guest(s): Mike Santoli (CNBC), Katie Richards (former Biden Treasury official)

Overview

This quick episode of “Your Money Minute” focuses on a subtle but powerful trend in the 2025 U.S. labor market: attrition as a strategy for managing workforce reductions. Host Jessica Ettinger, along with insights from Mike Santoli and Katie Richards, discusses how companies are letting workforce numbers shrink not through layoffs, but by simply not replacing retiring workers.

Key Discussion Points & Insights

1. 2025’s Flat Job Growth

• U.S. job creation in 2025 was essentially net zero—new jobs only just offset those lost.
  • Jessica Ettinger (00:00): “In 2025, the US ended up with basically net zero new job growth. About as many jobs were created as were slashed last year.”

2. The Rise of “Attrition” as a Workforce Strategy

• Companies are deliberately letting jobs disappear through natural attrition (retirements, resignations) instead of public layoffs.
  • Mike Santoli (00:13): “You have a lot of hesitancy to hire. You have a lot of people, hey, let’s let attrition do this for us.”
• This approach allows companies to appear stable, as open roles simply go unfilled instead of being explicitly eliminated.

3. Demographics Fueling Attrition

• A significant number of workers are retiring monthly, accelerating this trend.
  • Mike Santoli (00:21): “Quarter of a million people retire every month, right? That’s what the demographics are telling you as a lot of people just exiting seats at companies…”

4. Low Hire, Low Fire Market

• Employers prefer to keep things quiet—no big hiring sprees, no mass layoffs. Instead, the workforce contracts subtly.
  • Jessica Ettinger (00:30): “…they’re not being replaced. And those companies don’t look like they’re cutting jobs because they’re just letting the job disappear once a person retires.”
  • This creates a “low hire, low fire” sentiment across employers.

5. Wider Economic Context

• Weak job market coincides with persistent inflation and a sluggish labor recovery.
  • Katie Richards (00:45): “Near net zero job growth over the course of 2025, continued weakness in the labor market. We’re still seeing inflation stubbornly elevated and we’re seeing this continued kind of anemic low hire job market.”

Notable Quotes & Memorable Moments

• Mike Santoli (00:21): “Quarter of a million people retire every month, right? That’s what the demographics are telling you…”
• Jessica Ettinger (00:30): “…those companies don’t look like they’re cutting jobs because they’re just letting the job disappear once a person retires.”
• Katie Richards (00:45): “We’re still seeing inflation stubbornly elevated and we’re seeing this continued kind of anemic low hire job market.”

Timestamps for Important Segments

• 00:00 – 00:13: Jessica Ettinger introduces the stagnant job creation of 2025.
• 00:13 – 00:30: Mike Santoli explains attrition as a corporate strategy, pointing to mass retirements.
• 00:30 – 00:45: Ettinger and Santoli discuss companies’ reluctance to fill vacant positions, fostering a “low hire, low fire” environment.
• 00:45 – 01:02: Katie Richards places these trends in the larger context of inflation and weak labor market growth.
• 01:02: Jessica Ettinger signs off, directing listeners to further coverage at CNBC.com.

Tone & Takeaways

The episode is concise and informative, grounded in real data and explained in straightforward, accessible language. The key takeaway is that attrition has become a silent but powerful tool for workforce management in a challenging economic environment, impacting both new job seekers and those watching economic trends.