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They are all overstaffed because they were financially incentivized to overstaff, both for valuation and defensive talent hoarding reasons. This was a positive
by bentt 1y ago
They are all overstaffed because they were financially incentivized to overstaff, both for valuation and defensive talent hoarding reasons. This was a positive feedback loop which unwound in tech and will unwind in AI too.
- c16 1y agoDefinitely feels like since AI there's been a shift and it's gone from total head count as a measure of success to revenue per employee as a measure of success. The fewer employees the better.
- bentt 1y agoProbably because they need to burn all their investment money on compute.
- surgical_fire 1y ago> The fewer employees the better. This has always been true for any mature companies. The conundrum is that tech companies in particular are really averse to be perceived as mature companies, because their valuations have to be more grounded in reality.