Over half of S&P 500 firms saw stock drops after AI-related layoffs, averaging a 25% decline.

A CNBC analysis found that 13 out of 23 S&P 500 companies that announced layoffs linked to AI adoption experienced stock price declines averaging about 25%. Notable firms like Nike, Salesforce, and Fiverr saw significant drops after cutting jobs to embrace AI-driven automation. Experts say investors remain uncertain about AI's long-term impact, with many layoffs reflecting cost-cutting rather than clear productivity gains. Despite AI's potential, layoffs alone haven't boosted stock prices, as investors now look for companies that can successfully leverage AI investments to improve profits.