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You're neglecting capital costs and the dominant market position GitHub has. Capital being spent on GitHub to develop it could be used elsewhere or banked as p
by aunty_helen 4y ago
You're neglecting capital costs and the dominant market position GitHub has.
Capital being spent on GitHub to develop it could be used elsewhere or banked as profit if you had a smaller team.
GitHub isn't in a position that it's market dominance will be threatened by a slower pace of development.
You're also talking in absolutes, GitHub says there's a 40% productivity boost from using ai. Assuming (simplistically) that this results in a 40% required headcount reduction for the same output, you can then see:
0% headcount reduction, 40% improvement in velocity
40% headcount reduction, 0% improvement in velocity
Scale these two factors mentally to see that it's not all or nothing, maybe they've gone 20/20 and so some people still get to keep their jobs.
- Quarrelsome 4y ago> GitHub says there's a 40% productivity boost from using ai. That is their own marketing bumpfh and idk if any org should dog-food sales copy as strategy. I am saying that cutting development teams by 40% on the wonky maths that generative AI makes developers 40% more "developery" won't be best-practice. I don't think its a leap before you look job and I don't think the toolsets and practices are mature enough to bank that 40%, at least, not yet. Therefore I think the slashing of the engineering team in India is not related to AI but rather budget or political or smth else. I guess at the executive level its about whether you think you can increase sales with more R&D or whether you have entirely saturated your market or organisational capacity. Still, I would argue that mindlessly cost cutting is more the domain of the post-IPO, than that of the entrepreneur.