AI Layoffs, Spy Dolphins, and McDonald's China Bet

In a wide-ranging "In Other News" segment, CNBC explored several distinct trends across technology, defense, and global business. The report highlighted the complex relationship between AI adoption, workforce changes, and stock market performance, alongside unusual military applications of marine life and the strategic expansion of a global fast-food giant.

AI Layoffs vs. Stock Performance

The video opened by examining the impact of AI-driven layoffs on publicly traded companies. Citing one estimate, it was revealed that over 112,000 jobs in the U.S. have been lost due to AI since the beginning of 2025. A study from MIT suggests that AI could already perform 11.7% of the U.S. labor market's jobs, potentially saving companies $1.2 trillion in wages across sectors like finance and healthcare.

However, the analysis presented a counter-narrative to the optimistic view of these cuts. Investors, it seems, remain unconvinced that AI-driven layoffs are consistently improving companies' long-term financial outlook. An examination of approximately 2,000 publicly listed firms that announced AI-related layoffs indicated that over 52% of their stocks traded in the red following these announcements. This contrasts sharply with the S&P 500, where only 27% of companies saw their stocks decline in the same period after the launch of ChatGPT.

The average stock decline for companies with AI-driven layoffs was reported to be 28%, representing a significant loss relative to their pre-layoff valuation. Experts cited in the segment pointed to uncertainty surrounding AI's long-term impact as a major factor, describing it as a "macro shock" that is difficult to fully grasp.

The Intersection of AI and the Workforce

The report touched upon concerns that companies implementing AI for efficiency through layoffs might not achieve substantial gains. There's a question of whether these moves will truly position companies ahead of their competitors, especially if many are adopting similar strategies. The concept of "AI-washing" was also raised, suggesting that some companies might be attributing job cuts to AI to mask underlying financial struggles or other cost-cutting measures.

Investors are reportedly looking beyond companies merely using AI for leaner operations, seeking those that are genuinely integrating the technology to drive product and revenue advancements. The segment highlighted Google's Gemini tool as an example of AI integration leading to positive outcomes in advertising and search, suggesting that strategic AI implementation, rather than just cost reduction, is key to investor confidence.

Marine Mammals in Military Operations

Shifting focus, the video delved into the U.S. Navy's long-standing Marine Mammal Program. It was reported that dolphins and sea lions are trained for critical military functions, including surveillance, mine detection, and object recovery in underwater environments. Scott Savitz, a senior engineer at RAND Corporation and an expert in mine countermeasures, explained that dolphins utilize biosonar (echolocation) for underwater object identification, noting its superior accuracy compared to electronic sonar.

The segment also touched upon the ethical considerations and challenges in training these animals. Savitz stated that for the dolphins, the work is akin to a game, similar to drug or explosive-sniffing dogs, and emphasized that no marine mammals have been harmed during military operations. The report also referenced a Wall Street Journal article about Iran's alleged use of mine-carrying dolphins to attack U.S. warships, though U.S. defense officials could not confirm or deny the existence of "kamikaze dolphins."

McDonald's Expansion in China

Finally, the report turned to McDonald's aggressive expansion strategy in China. Eunice Yoon, CNBC's Beijing Bureau Chief, highlighted the rapid opening of new McDonald's locations, with the country now boasting more stores than the United States. The market is identified as a significant growth driver for the company, accounting for half of its new store openings last year.

The report noted that McDonald's initial entry into China in 1990 was met with great excitement, capturing the nation's opening to the world and its burgeoning wealth. The brand continues to leverage this nostalgia, offering classic menu items alongside locally adapted options. The "poor man's meal" in China, priced at approximately $2, includes a burger and a drink or dessert, appealing to consumers seeking value and quality, even in a challenging economy.

The menu in China is a blend of familiar favorites and unique local offerings, such as honey barbecue chicken and dragon fruit flavors. McDonald's is also reintroducing popular items like the McFlurry, which had been discontinued locally for a decade. This strategy of adapting to consumer preferences and offering value-driven options is crucial for McDonald's continued success in the competitive Chinese market.