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I think a likely and hidden contributor to the BigTech layoffs of 2023 is the development of AI. I know there are other reasons, but it didn't hurt that they ha

by mu53 2y ago

I think a likely and hidden contributor to the BigTech layoffs of 2023 is the development of AI. I know there are other reasons, but it didn't hurt that they had labor saving AI systems built that could handle the load. After hiring a lot of people, having systems built, and training data developed, they could replace large amounts of staff that used to need to do manual work those AI systems. Less manual moderation, more automated responses. It became "fashionable" to cut staffing levels, so companies followed suit. Most tech leaders avoid talking about how much labor AI will replace. We don't know yet, but it likely follow trends of making junior roles harder to find while making seniors more valuable with a slight reduction in the overall workforce. This has been present in all industries

aurareturn 2y ago
I don't think the layoffs were related to big tech firms wanting to replace the workers with AI. I think it is: 1. Over hiring from covid 2. A switch from developing traditional software to one that is LLM based
- impossiblefork 2y ago
  Nah. It's much more likely to be the interest rates. The interest rates mean that the now gets a higher priority, and software ready in 2030 or later a lower priority.
  - aurareturn 2y ago
    "Covid" implied both the stay at home digital boom and low interest rates.
    - impossiblefork 2y ago
      But the interest rates were low already after 2008.
Etheryte 2y ago
I don't agree with this take, the layoffs are companies simply returning to their regular baseline numbers. AI was just a comfortable scapegoat for many to put the blame on rather than "we like money".
- Ekaros 2y ago
  Looking at the workforce and asking do these people produce enough value for their pay? Do they actually provide some new innovations that would justify their costs? It is the same everyone does. It is not like these people will keep their plumber of home builder employed out of good will after the job is done. Or nanny around after their kids have fully grown...
greenchair 2y ago
no need to blame a hidden boogieman - this problem is all about inflation couple with end of low interest rates.
painted-now 2y ago
interest rates

by mu53 2y ago

aurareturn 2y ago

I don't think the layoffs were related to big tech firms wanting to replace the workers with AI. I think it is: 1. Over hiring from covid 2. A switch from developing traditional software to one that is LLM based

impossiblefork 2y ago
Nah. It's much more likely to be the interest rates. The interest rates mean that the now gets a higher priority, and software ready in 2030 or later a lower priority.
- aurareturn 2y ago
  "Covid" implied both the stay at home digital boom and low interest rates.
  - impossiblefork 2y ago
    But the interest rates were low already after 2008.

Etheryte 2y ago

I don't agree with this take, the layoffs are companies simply returning to their regular baseline numbers. AI was just a comfortable scapegoat for many to put the blame on rather than "we like money".

Ekaros 2y ago
Looking at the workforce and asking do these people produce enough value for their pay? Do they actually provide some new innovations that would justify their costs? It is the same everyone does. It is not like these people will keep their plumber of home builder employed out of good will after the job is done. Or nanny around after their kids have fully grown...

greenchair 2y ago

no need to blame a hidden boogieman - this problem is all about inflation couple with end of low interest rates.

painted-now 2y ago

interest rates