The Redesign Layoffs

Healthy-company layoffs are no longer just a lagging indicator of weakness. In this weekend edition, Stephen Forte argues they can be an early signal of organizational redesign — and explains what mid-market CEOs should do before the pressure shows up in their numbers. What this episode covers: Why this wave of layoffs is different from 2009 and different from the 2023 over-hiring correction Why many strong companies are redesigning around new information economics, not just cutting costs Why most mid-market firms should not copy Block directly The pattern Stephen sees across successful and failed AI adoption efforts A practical 90-day playbook for CEOs: pick two workflows, map them properly, run shadow mode, define decision rights, and learn from overrides Key idea: the real shift is not AI as a tool. It is AI as a change to how context moves, how decisions get made, and what parts of management remain valuable. If your company is healthy, that is not a reason to delay this work. It may be the best reason to start it.