Analyst Dan Ives Warns Companies Talking About Job Cuts Are ‘Shooting Themselves in the Foot'

Wedbush analyst Dan Ives warned that tech CEOs publicly tying AI to headcount cuts risk hurting investor sentiment, arguing LLMs will become commoditized and that engineering and product innovation will differentiate winners. The article uses Atlassian as a live case: its March 10% layoffs drove the stock to year-to-date lows, but Q1 results showing $1.79B revenue (+31.7% YoY) and $1.75 non‑GAAP EPS (vs. $1.34 consensus) plus AI product progress triggered a ~29% one‑day pop, reversing bearish sentiment. Ives’ message: markets currently reward offensive, growth‑oriented AI narratives and punish companies that lean into cost‑cutting headlines. The takeaway for investors is to watch management messaging—teams emphasizing AI‑driven growth are likelier to see sentiment and stock price recoveries than those emphasizing workforce cuts.