#39 - A growing disconnect

Author

Mike Wood
May 16, 2025

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I try to be optimistic. I really try. But the news keeps dragging me down. Aside from the "totally not a bribe" gifts of a luxury aircraft to Trump, and a 'Yuge' order of Boeing planes (guess who's friends have a the stock), we're seeing more large layoffs in tech and a complete disconnect from the government on what's happening in work today.

RFK Jr. and his enablers are doubling down on welfare and medicaid requirements, making a case in the NYTimes to send more of our most vulnerable society members out to "plentiful" jobs. But here's the secret: While there are some jobs out there, they exist because they are jobs that no one wants. Physically demanding jobs that only pay $7.25 a hour.

Many people before me have written about the complete erosion of the middle class in America, between the "have too much"s and the "don't have enough"s and it mirrors what we've been seeing in the workplace. More skilled professionals are pushed into low-wage jobs just to stay afloat. Is this the new normal? Will having a job soon mean just barely getting by?

And what about corporations? What about the ones who told us that their employees are their number one resource, who championed a life at their company in their DEI-focused career pages? They're backtracking smoother than Michael Jackson.

Corporations and DEI

They don't care. It's your problem, not theirs. Everyone's replaceable. People at the top are too insulated from the struggles of everyday workers.

I've been laid off twice in four years. You don't understand — can't understand — just how tough things can get until you've had to make decisions like: which bills to pay this month? Or, how can I get the most meals out of my groceries? Or giving their kids second-hand gifts for Christmas. These all happened to me, but looking back, I am better off for it because I understand what that's like. I have empathy towards any colleague or employee facing tough times.

In boardrooms and political arenas, decisions are made with a cold, calculated detachment—policies that insist jobs are plentiful without addressing their unlivable wages, or layoffs framed as "necessary efficiencies" while executives pocket bonuses. This disconnection breeds a dangerous cycle where the privileged dismiss the plight of those scraping by, and workers, in turn, lose faith in a system that seems rigged against them. As empathy fades, solidarity crumbles, leaving a workforce fragmented and demoralized.

So where do we go from here? The gap between the “have too muchs” and the “don’t have enoughs” isn’t just growin, it’s hardening into a reality where empathy is treated like a luxury, not a necessity. Those making the rules are so far removed from the daily grind that they’ve forgotten what it’s like to worry about rent, food, and the next paycheck. And as long as the people at the top keep pretending that any job is a good job, while conveniently avoiding those low-wage, backbreaking gigs themselves, we’ll keep seeing this erosion of empathy and solidarity.

But here’s the thing: I’m not giving up. We’ve been through tough times before, and we know how to push back when things get bleak. We can still hold leaders accountable, advocate for fair wages, and remind companies that people aren’t just assets, they’re human beings who deserve respect, dignity, and a fair shot at thriving. Let’s keep calling out hypocrisy where we see it, lifting each other up, and fighting for a better, more empathetic future. Because I still believe that we can change the story, it’s just going to take a whole lot more noise.

On to this week's news.

This edition of The Wrap features the growing divide between management and workers, upcoming research and events from HR.com, Microsoft layoffs, a look at frontline versus desk job hiring with JazzHR, Joel Lalgee vs. Dr. Phil and an out-of-touch senator, Klarna realizing quality diminishes when you replace people with AI, and a look into how AI is helping, not replacing, radiologists.

Enjoy and have a great weekend!

Mike

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📊 The Latest from HR.com's HR Research Institute

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New Advisory Board to Guide Recruitment Tech Study and Virtual Event

A group of industry heavyweights has come together to form an advisory board guiding a groundbreaking study on recruitment technology. The board will help shape insights into how automation, AI, and new platforms are reshaping talent acquisition and will culminate in a virtual event this October where findings are shared and debated.

Labor Law Compliance: Most Companies Are Still Playing Catch-Up

According to new research from HR.com, only 1 in 3 organizations take a proactive approach to labor law compliance. Instead of anticipating changes and building resilient processes, most companies are stuck reacting to violations as they arise, often leading to costly mistakes and reputational damage. The takeaway? Staying ahead of compliance isn’t just a legal obligation, it’s a strategic advantage.

📰 What’s New in HR Tech

Because there is no such thing as a slow week

Microsoft Cuts 3% of Workforce Amid Cost-Cutting Push

Microsoft just announced plans to lay off 3% of its global workforce as part of a broader effort to streamline operations and reduce costs. The move comes despite the company’s continued profitability and follows similar moves from Meta, Google, and Salesforce. Hopefully this isn't the start of something bigger.

Desk-Based vs. Frontline Hiring: A Tale of Two Talent Pools

JazzHR breaks down the key differences between hiring for desk-based roles versus frontline positions, and the insights are eye-opening. From sourcing strategies to candidate expectations, the post highlights why a one-size-fits-all approach just doesn’t work. Whether you’re filling roles in retail or recruiting for tech, understanding these differences can mean the difference between high turnover and long-term fit.

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Looking for ways to stretch your marketing budget further? These 15 mini case studies show exactly how these small brands made such big waves without breaking the bank.

🗣️ Hot HR Influencer Takes

From the front lines of recruiting, tech, and transformation—here’s what the sharpest minds in HR are saying this week:

Friend of The Wrap Joel Lalgee weighed in on an HR Brew ™️ article about AI replacing recruiters and he's spot on.

❝

I think a lot of these VCs that are saying, 'Hey, we've got a tool that can replace recruiting.' It's because a lot of them have reduced recruiting down to where it's just an algorithm, where it's [matching] a job description with a resume," Lalgee said. "But anyone who's in recruiting knows that that's the starting point. There's so much more."

But was Joel done this week? No! He stood up for remote workers in this hit piece by absolute fraud and horrible human being Dr. Phil. I love how Joel is the face of boomer angst. Fight the good fight Joel!

👆 Worth a Click

Work/Life news beyond product announcements

AI remorse: Klarna goes full AI, loses quality

Klarna, the Swedish fintech company, is reevaluating its heavy reliance on AI after encountering significant challenges. In recent years, Klarna integrated OpenAI's technology to automate marketing and customer service roles, even reducing its workforce by 22% and halting new hires in 2024. The company claimed that its AI assistant could perform the work of 700 full-time agents, leading to substantial cost savings.

However, CEO Sebastian Siemiatkowski has acknowledged that this aggressive shift towards automation compromised service quality. He admitted that prioritizing cost over quality resulted in diminished customer satisfaction.

Have we seen this before? Yes! When companies tried to automate their customer service to a touch-tone phone prompt, the quality and user experience were so bad that people took to other communication platforms (social media) just to try and reach someone. History repeats itself. There is only so far you can automate before it diminishes your quality and hurts you in the long run.

AI vs. Radiologists: Mayo Clinic Tests the Future of Diagnostics

The Mayo Clinic is exploring the use of AI to interpret medical imaging. Does this mean less jobs for radiologists? Nope. They've found that the true power of AI comes in working with the radiologist.