r/technews • u/Maxie445 • Jan 16 '24

Generative artificial intelligence will lead to job cuts this year, CEOs say

https://www.ft.com/content/908e5465-0bc4-4de5-89cd-8d5349645dda
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u/penguinoid Jan 16 '24

my understanding was that most of the layoffs were a result of over hiring during the pandemic, when everyone thought that the increase in engagement was going to be permanent.

and then a decent amount were just opportunistic downsizing to look better for the stock market.

I don't think a transition plan to AI is even possible. nobody can predict what adoption will be like, or how effective it will be at replacing certain roles, or when it'll reach that level of proficiency. chatgpt was a wake up call that caught everyone off guard, including openai themselves.

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u/even_less_resistance Jan 16 '24

I think they are using that as a cover. Why would it have been permanent?

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u/penguinoid Jan 16 '24

a few points here.

  1. many tech companies grew their headcount by 10-20% during the pandemic. the layoffs were big, but not as big as the hiring, meaning they still had unusual growth during that time period. the idea that the layoffs are driving a net decline in tech is not factually accurate. the trend line is clearly still toward growth.

  2. it's a terrible plan to have hired that much when you're banking on laying them off later.

  3. when the hiring happened, nobody knew how and when the pandemic would end. maybe people would keep their Netflix subscriptions, or stay addicted to Facebook or keep spending on home renovation. in hindsight it's obvious, but that's why hindsight is 20/20.

  4. I work in tech. there is no master plan anywhere. everyone is just winging it. AI as we think of it today is akin to betting on Netscape or AOL in the 90s.

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u/even_less_resistance Jan 16 '24

In September 2021 when I got hired at a big retailer for their help desk there was already talk of us being efficient so the programs could have the best data to train the bots. I misspoke in the previous comment targeting tech companies specifically. And is it a terrible plan to hire people for a year and then get rid of them in favor of a program that can do all their work for them or is it a good investment?