Reid Hoffman: AI Wins By Expanding Capabilities Not Cutting Costs
It’s also true that layoffs are just one facet of the larger AI adaptation story. There are AI hiring waves too, along with AI start-up booms and AI investment flowing into both new ventures and internal transformation.
Reid Hoffman@reidhoffmanTo date, the AI adaptation story is most often told through the lens of company layoffs, and it’s understandable why.
Modern employment should be an alliance.
Not just legal contracts, but moral promises that are not to be made lightly, and even less lightly broken.
Some thoughts on layoffs & hiring in AI, and the promises we make to each other that shouldn't be broken:
As a general principle, I believe that AI wins by doing more, not spending less, and the same companies that are laying employees off now may find themselves understaffed if their competitors use AI to do more with the same number of employees.
Reid Hoffman@reidhoffmanThe same is true for companies. Those who frame AI purely as a cost-cutting exercise will miss the alliance-building moments that determine who actually thrives.
But that doesn’t mean companies should feel entitled to treat this moment of technological upheaval as an instance of force majeure.
That framing is convenient, and in narrow legal terms it may even be accurate. But it is not a legitimate ethical posture.
Reid Hoffman@reidhoffmanWhen companies announce AI-driven layoffs, there is, and will continue to be, skepticism about their true motivations—and some of this skepticism is warranted. At the same time, ignoring or dismissing the coming impact of AI is likely more dangerous than overreacting to it. That’s because it’s already clear how quickly it can change things.
When companies announce AI-driven layoffs, there is, and will continue to be, skepticism about their true motivations—and some of this skepticism is warranted.
At the same time, ignoring or dismissing the coming impact of AI is likely more dangerous than overreacting to it. That’s because it’s already clear how quickly it can change things.
Reid Hoffman@reidhoffmanAs a general principle, I believe that AI wins by doing more, not spending less, and the same companies that are laying employees off now may find themselves understaffed if their competitors use AI to do more with the same number of employees.
More on this topic and alliances in the AI Era: https://open.substack.com/pub/reidhoffman/p/moral-promises-layoffs-hiring-and?r=1o7gu7&utm_campaign=post-expanded-share&utm_medium=post%20viewer
Reid Hoffman@reidhoffmanAnd not just because it’s the ethical thing to do. Companies hoping to earn the trust of new generations of talent—and the loyalty of their alumni networks—are ones that treat AI-driven restructuring as a test of Alliance principles, not an exemption from them.
And not just because it’s the ethical thing to do. Companies hoping to earn the trust of new generations of talent—and the loyalty of their alumni networks—are ones that treat AI-driven restructuring as a test of Alliance principles, not an exemption from them.
Reid Hoffman@reidhoffmanIndeed, if you believe a company does in fact have moral obligations to employees with whom they’ve built alliances, these obligations shouldn’t be allowed to evaporate when the environment gets harder. If anything, they intensify.