Comment by sunir
13 hours ago
Agreed. We are still in a capital crunch so overhiring is out of fashion. People don’t remember the early 90s or the dot.bust when the same things were said.
Kraft 1977 Programmers and Managers talked about this if I recall. Still the best alternate take on our industry I have ever read.
The most likely explanation for "AI layoffs" is not that AI has caused a dramatic jump in productivity - its more that managers are running out of creativity in relation to revenue-generating and cost-reducing projects and henceforth have no use for the surplus of labour. Its much easier to maximize the stock price in the short-term by riding the 'AI' wave.
There seems to be some nonsensical belief that there exists this endless stream of positive NPV projects to take. No... reality is not like that.