Comment by stinkbeetle
18 days ago
The idea that companies need "cover" to perform layoffs (particularly in the US) doesn't make sense to me. Tech companies, all companies lay people off regularly. (To a first order approximation) if a worker is a net positive to a company then the company will want to keep them, and if they are not then the company will want to get rid of them. AI or no AI.
I’ve seen many essential people being laid off for stupid reasons, the gp reason above being part of the story for some. Finance runs the world not tech. Tech is only welcome when it helps finance else it is marginalized.
Seems like the cover might be for investors. If a company is shrinking but you don't want investors to know it's shrinking, you can say you're improving productivity with AI.
If a company is shrinking wouldn't investors just see it was shrinking from their financial statements?