Many firms over-hired or lowered standards from 2021 to 2023.
Bloat correction masked as AI adoption
Everyone who over-hired or lowered the bar too much in the 2021-2023 wave, or isn’t growing as fast as budgeted, now pretends they’re laying people off “due to AI productivity.”
Many users affirm that tech firms are using AI as cover for layoffs after over-hiring, while a few call the claim nonsense since AI is truly driving productivity gains.
Much these companys possess zero wisdom. If you lay off people you must pay severance penalty. Cost money for shareholder.
Just say your company now value racism, homofopeah, and hate all hoes. Much people resign. Now no need pay severance. Save shareholder profit. The white man leader lack perspecassidy.
@JTLonsdale exactly
a lot of these layoffs due to 'AI productivity' are just a comfortable shield for all the other things going wrong in the business
it’s arguably the most convenient way to reframe a cost problem you already had into a forward-looking decision the market rewards you for
@JTLonsdale It sounds a lot better than leadership admitting they failed to manage their growth
@MatthewBerman 🎯
@nonnag 🎯
@JTLonsdale Remote hiring worked about as well as remote work in large companies.
in 2014-2018 I ran Reid Hoffman's consultancy based on his book "The Alliance" - C-level consulting engagements in Silicon Valley tech and VC companies.
I just couldn't understand so many people's jobs - just bizarre stuff. And the holders of said jobs were the most vocal in all meetings, dominating over engineers, product, marketing execs.
People, including me, were chastised for saying something perfectly normal. Lots of self-righteousness going on.
What I realized later is that it was the birth of corporate wokism.
All these people need to be fired. They did incalculable damage.
The Strategic Alternative for Efficiency and Integrated Architecture: From Human Partnership to Third Millennium Management. Good morning Mr. Joe, the digital engineer of Silicon Valley! I completely agree with your insight. Tech executives hide their administrative failures and over-hiring behind the scapegoat of AI. Here, let us teach them a lesson; the modern Eternal City - Al-Rashid Path will be a reality in business management, as we view talent as strategic partners, not just employees. Our vision will revive the economy, boost U.S. GDP growth by eight points, and absorb even those who were laid off to build the ultimate future together. — Signed: Engineer of the Third Millennium Civilization
@JTLonsdale @realDonaldTrump @ElonMusk #TheThirdMillennium #SiliconValley #BusinessManagement #TheEternalCity #Economy
@k_kohlbrenner I believe in higher productivity thanks to AI - which btw also often makes each person worth more. We are helping enable it in various ways with all the companies we’ve been building and investing in.
I also know what hundreds of companies are doing, per above 🤣.
@JTLonsdale THIS.
And of course every journalist takes them at their word because journalists hate AI as well.
@JTLonsdale if a new company starts and says instead of 100 people, we can operate at 15 headcount … is that OK to attribute to AI productivity?
So, why can’t large companies who have too many people say, we’re cutting headcount due to … AI productivity?
@JTLonsdale What the AI is doing is eating the seed corn of the next harvest. Junior employees learn from senior employees by doing busy work for them that AI now helps with but you then don’t train the next generation of senior employees. So companies have to hire back, no savings.
@JTLonsdale Nope. This is cover for offshoring and sponsoring H-1B visa workers.
@JTLonsdale And many are letting go of the wrong people.
@JTLonsdale "AI washing" - reframing workforce cuts as innovation rather than cost reduction
@MatthewBerman Wix is another example...
@JTLonsdale Yea, this seems pretty clear to many in tech. Outside of tech, though, people who are already skeptical of AI seem more concerned about it based on the headlines like "AI is stealing people's jobs"
@JTLonsdale CORRECT
@JTLonsdale Yes, the narrative provides the perfect cover to get rid of low-performing employees. 2021-2023 might have been like the last helicopters out of Vietnam for low-skilled tech workers that fudged their resumes.
@JTLonsdale They are riding the doomerism nonsense to hide their poor decisions.
Many firms over-hired or lowered standards from 2021 to 2023.
Bloat correction masked as AI adoption
Everyone who over-hired or lowered the bar too much in the 2021-2023 wave, or isn’t growing as fast as budgeted, now pretends they’re laying people off “due to AI productivity.”