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Most of this is not occurring due to AI or offshoring, that's just what's told to investors. In reality, it's the macroeconomic climate that has shifted since a
by satvikpendem 1y ago
Most of this is not occurring due to AI or offshoring, that's just what's told to investors. In reality, it's the macroeconomic climate that has shifted since a few years ago, namely Section 174 changes for amortization of R&D expenditures, overhiring during covid, and higher Fed rates.
- glouwbug 1y agoThe only real answer. AI is the current scapegoat for any self-inflicted short sightedness, like the 0% interest rate over-hiring times of 2020-2021. Why blame yourself as a company when you can blame the loudest current news and market hype wave?
- satvikpendem 1y agoAnd not just blame but make your stock price go up saying you'll replace all your developers (even though that won't happen for another 20 years, if ever).
- keeda 1y agoSection 174 was very unpopular when it came out and many people raised the alarm over it (although that seems to have simmered down over time.) If hiring was impacted by that, a lot of execs would be very vocal about it to increase public pressure on getting it reversed, no?
- frankbreetz 1y agoFrom what I understand this provision is potentially being temporally re-added in the "Big Beautiful Bill" https://www.crowell.com/en/insights/client-alerts/house-committee-passes-part-of-big-beautiful-bill-containing-noteworthy-improvements-to-research-and-development-incentives-for-companies https://www.crowell.com/en/insights/client-alerts/house-comm...