Robert Kiyosaki's Warning: Is "Going to School for Job Security" Really Obsolete?

The numbers are stark. U.S. employers announced just over 1.2 million job cuts in 2025, a 58% leap from the prior year. This wasn't a blip; it was the fourth straight year of rising layoffs, pushing the total to one of the highest levels since the Great Recession. The most recent quarter was particularly brutal, with nearly 260,000 jobs erased-the worst fourth quarter since 2008.

The tech industry bore a disproportionate share of the pain. Technology remains the hardest-hit private sector industry, with more than 150,000 job cuts announced so far this year. This follows a boom-and-bust cycle, as companies reset headcount after years of expansion while increasingly leaning into automation. The wave isn't limited to Silicon Valley, though; telecom, retail, media, and services firms are all shedding workers at double- or triple-digit percentage increases.

At the same time, a survey by the World Economic Forum found that some 41% of companies worldwide expect to reduce their workforces over the next five years because of the rise of artificial intelligence. This points to a clear trend: technological change is a major driver of these cuts, not just a one-time cost-cutting spree.

So, is this a sign that job security is obsolete? Not exactly. These layoffs are a symptom of a specific moment-a painful but necessary corporate cost-cutting phase amid rapid technological change. The data shows it's a targeted wave, hitting certain sectors and driven by specific pressures like government restructuring and economic conditions. It's a reality check, not a death knell for all careers. The key is understanding that the rules are shifting, and the path forward requires adapting to this new landscape.

The Business Logic: Why Companies Cut Payrolls

Let's cut through the noise and look at the simple math. For a company, a worker is a line item on the profit-and-loss statement. When that line item gets too large relative to the revenue it generates, the calculus becomes straightforward: cut the cost, and the bottom line improves. That's the core business logic driving this wave of layoffs.

Companies are treating layoffs as a direct lever to boost profits. The math is often clear: the one-time severance payment is typically outweighed by the ongoing savings from a worker's salary, benefits, and overhead. It's like a homeowner deciding to sell a vacation home they can't afford to maintain; the lump sum from the sale might be less than the home's value, but it removes a monthly mortgage, taxes, and maintenance bill. For a firm, shedding a salaried employee is a similar cash-flow decision. As the World Economic Forum notes, 41% of companies worldwide expect to reduce their workforces over the next five years because of the rise of artificial intelligence, framing it as a strategic cost-control move.

This is a direct response to economic pressure. Firms are trying to maintain their profit margins while facing uncertain demand. In a tough market, every dollar saved on payroll is a dollar that stays in the company's pocket. The "rolling layoffs" we're seeing-smaller, more frequent cuts rather than massive one-time firings-are a sign of companies trying to stay nimble, adjusting their workforce size in real time to match fluctuating business conditions. It's a way to preserve cash and protect the balance sheet during periods of economic uncertainty.

A concrete example illustrates this scale. In December, the Spanish telecom giant Telefonica announced it would cut 5,500 jobs with a total cost of €2.5 billion. That figure represents the combined severance and transition expenses. But the company's goal is to save money over time. The math here is about future cash flow: the €2.5 billion cost is a known, upfront expense, while the savings from reduced salaries and benefits will be realized over years. If the annual savings from those 5,500 roles exceed the cost of the cuts, the move improves the company's long-term profitability. It's a classic cost-cutting playbook, applied on a massive scale.

Contrasting Paths: The Traditional Job vs. Financial Security

Robert Kiyosaki's warning cuts to the chase: the old promise of "job security" is broken. He points to the sheer scale of the layoff wave as proof that even skilled workers are not immune. The data supports his point. In 2025 alone, U.S. employers announced just over 1.2 million job cuts, a surge that shows no sign of abating. This isn't just about temporary downturns; it's a fundamental shift where the stability of a paycheck from a single employer is no longer a reliable foundation for long-term security.

His advocated alternative is a complete pivot. Instead of trading time for a salary, Kiyosaki argues for building a "piece of the business." This means financial literacy, entrepreneurship, and investing-activities that allow you to grow your own wealth rather than rely on an employer's cash register. The goal is to create assets that generate income, not just a job that pays you. As one commenter noted, financial freedom and understanding how to grow purchasing power through investments, not just a paycheck.

This new path, however, requires a different kind of preparation. It's not about memorizing textbook answers for a standardized test. It's about building a "rainy day fund" and learning how to make money work for you. It's about treating your own financial education as the most important course you'll ever take. The traditional model offered a steady paycheck; the new model demands proactive management of your own financial future. The question isn't whether you should go to school, but what kind of school you need to attend to thrive in this changed landscape.

The Investment and Career Implications

The layoff wave isn't just a headline; it's a fundamental reset for how we think about work and money. For both investors and workers, the path forward requires adapting to a reality where automation and AI are the dominant forces, destroying some jobs while creating new ones in their wake.

For investors, the lesson is clear: scrutinize a company's cost structure and its growth model. The data shows that 41% of companies worldwide expect to reduce their workforces over the next five years because of the rise of artificial intelligence. This isn't a distant threat; it's a current cost-cutting lever. A company that relies on massive, recurring layoffs to boost profits is playing a short-term game. Its long-term health depends on whether it can grow revenue enough to fund expansion without constantly shedding people. Look for firms investing in automation not just to cut costs, but to scale efficiently and capture new markets. The goal is to find businesses that can grow their top line while managing their workforce in a sustainable way, not ones that treat payrolls as a line item to be slashed.

For workers, the key is adaptability and continuous learning. The "job for life" model is fading, but it's not disappearing entirely. The trend is toward a career of multiple roles, industries, and even self-employment. As one commentator noted, AI is here to stay and will take over many jobs in the nearest future. May as well adapt now. This means treating your own financial education as the most important course. It's about building a "rainy day fund" and learning how to make money work for you, not just a paycheck. The new security comes from having a diverse skill set and the ability to pivot. The World Economic Forum points to a future where tech jobs in big data, fintech, and AI are expected to double by 2030. That's the opportunity: focus on developing skills in these growing areas, and be ready to learn new ones as the next wave of technology arrives.

The bottom line is that the old rules are obsolete. Whether you're putting money into stocks or building a career, the playbook has changed. Success now belongs to those who can navigate the churn, understand the business logic behind the cuts, and continuously upgrade their own value in a world where the only constant is change.

What to Watch: Catalysts and Scenarios

The layoff wave is a powerful force, but it's not a permanent state. The direction it takes next hinges on a few clear signals. The first is the pace of planned hiring. On a full-year basis, companies are still pulling back, with planned hires down 34% from 2024. Yet there's a flicker of hope in the data. December showed a positive uptick, with hiring plans jumping 31% from the same month the prior year. That small bright spot suggests some firms are starting to look ahead, perhaps seeing stabilization or preparing for a seasonal ramp-up. For now, the trend is still negative, but the direction of the uptick is what matters.

Which industries see the next wave of cuts or hiring will be critical. The tech sector remains a key battleground, having announced more than 150,000 job cuts so far this year as firms reset after a boom. Retail and services are also under pressure, with cuts up 123% and 68% respectively. At the same time, government agencies are a major source of churn, with DOGE-driven layoffs leading to a 703% hike in government job cuts last year. Watch these sectors closely; they are where the next round of cost-cutting or cautious hiring will likely play out.

The real test, however, is economic growth. The current wave of layoffs is a direct response to market and economic conditions. When demand is soft, companies cut payrolls to protect profits. The only thing that can truly reverse this trend is a sustained pickup in business. If the economy grows again, companies will need more workers to meet demand, making drastic cost-cutting measures less necessary. Until that happens, the pressure to trim payrolls will remain. The bottom line is that the layoff wave is a symptom of a weak economy. Its reversal will be a sign that the underlying condition is improving.