The corporate mood swing has been dramatic. In 2021, CEOs were obsessed with the talent shortage, offering unprecedented perks, and declaring that employees were their most valuable asset. Just a few years later, these same executives are telling workers to “stop complaining,” suggesting they’re easily replaceable, and warning them that AI is coming for their jobs.
As a CEO coach who has advised leaders through multiple economic cycles, I’ve observed pendulum swings before – but rarely with such public vitriol. The recent Wall Street Journal article highlighting quotes from prominent CEOs like JPMorgan’s Jamie Dimon (“I’ve had it with this kind of stuff”) and Uber’s Dara Khosrowshahi (telling employees unhappy with policy changes to essentially deal with it) reveals a significant shift in leadership values.
This isn’t just about changing market conditions – this type of hard-line stance often stems from leaders’ disdain for the way some younger workers are showing up at work, combined with an entrenched belief that the way these executives themselves came up through the ranks is the only true path to success.
But the “everyone’s replaceable” narrative may be a strategic error that ignores demographic realities, misunderstands worker motivations, and undermines a healthy organizational culture. Leaders who join the cacophony of tough talk are setting themselves up for a reckoning that may be costly and difficult to reverse.
The Demographic Reality CEOs Are Ignoring
Despite phenomena like AI and economic uncertainty, the U.S. workforce is still on the edge of an unprecedented demographic cliff. We’re in the midst of what demographers call “peak 65” with more than 11,200 Americans turning 65 every day — or over 4.1 million every year.
Between 2024 and 2030, approximately 30.4 million Americans will reach retirement age, representing about 10% of the current U.S. workforce. Even if more workers delay retirement, there are not enough new entrants to the workforce to fill the vacuum they will leave behind.
Leaders who believe AI will solve this problem may be indulging in wishful thinking. While AI will certainly transform work, most serious analyses suggest it will augment rather than replace knowledge workers in the coming years.
Without question, the biggest factor standing between any organization and its goals is its people, and treating employees as expendable commodities is short-sighted, at best. In one respect, the future and past are identical: Organizations that fail to attract and retain sufficient talent will struggle to compete.
Debunking Generational Myths
There’s nothing new about seasoned leaders viewing the next generation as “soft” or lacking work ethic – we heard the same complaints about Gen X in the 1980s, and about Millennials in the 2000s. These views seem to stem from a mix of nostalgia about “paying dues” combined with legitimate recognition that workplace norms have indeed evolved.
But today’s skeptical executives overlook the fact that many of these changes, like reasonable work hours, flexibility, and purpose, are healthy corrections to unsustainable workplace practices that weren’t particularly effective anyway. Interestingly, McKinsey’s comprehensive research finds that worker preferences are coalescing around these “new” norms. The research shows that what employees genuinely value – fair compensation, opportunities for advancement, feeling valued, and meaningful work – transcends generational divides.
The Hidden Costs of Tough Talk
Beyond the demographic realities, there are immediate costs to the “everyone’s replaceable” rhetoric that we’re seeing from some leaders.
First, there’s the impact on innovation. Psychological safety – the belief that one can speak up and take reasonable risks without fear of punishment or humiliation – has been proven essential for creativity and innovation. When executives foster environments where fear and intimidation prevail, they effectively shut down the risk-taking needed for breakthrough ideas and problem-solving.
Second, there’s the productivity paradox. Research from Gallup consistently shows that engaged employees outperform disengaged ones by 23% in profitability. The current approach of demanding more while offering less is resulting in disengagement at scale.
Finally, there’s the reputational damage. In an age of radical transparency, internal communications don’t stay internal. When JPMorgan’s Jamie Dimon profanely dismisses employee concerns, or Shopify’s Tobi Lütke tells staff that AI will be considered before any new hire, these statements become part of the company’s employer brand.
A Different Approach
History shows us that labor markets are cyclical. The balance of power between employers and employees shifts with economic conditions, technological disruptions, and demographic changes. Smart leaders recognize these cycles and avoid short-term behaviors that create long-term vulnerabilities.
This isn’t about coddling workers or giving them whatever they want. It’s about eliminating the “us versus them” mentality that pits executives against employees.
Effective leadership isn’t about intimidation or demands – it’s about establishing structure, communicating goals and expectations clearly, providing a vision of what success looks like, and ensuring people have the resources to get there. Leaders should ask themselves: When conditions shift again, will your current approach to talent position you as an employer of choice, or will you be explaining away comments that have become part of your legacy?
The answer to that question might be worth billions.