That's going to happen in all of big tech (already happening at Amazon and Microsoft). These companies have too many employees. It was never really justified and with AI even more so. I've been in big tech and directors often tell everyone to hire when they can rather when they need. For example, if they know a hiring freeze is coming, they will try to hire as many people as they can before it happens. It's rare to find people in big tech where their incentives align with the company. (and the blame is not always on the people themselves)
As for Meta, I give Mark credit for trying, even if he failed so far with all the VR stuff. The main disappointment is about Llama cause it's clearly an execution problem. With Meta's investments in AI throughout the years, not being able to compete with Anthropic and OpenAI is a big failure.
It's probably a mix of AI productivity boost and market cycle. There is some substance to AI job loss, but I believe jevons paradox will eventually catch up to transformer-based LLM capabilities.
I'm the last remaining frontend developer after multiple rounds of layoffs. With claude code I'm able to do 2x-3x the work I was able to do before it existed. It's hard for me to rationally argue we need more frontend developers.
Google's projected AI capex spend is $170-180 billion for this year. It's unreasonable to think AI would not be a reason for companies to consider layoffs.
Mangers and executives have better tools now to track a tech workers output/performance, they will cut the useless/low performers/in over their head people who were hired during preceding years. A small tech team with proficient intelligent devs augmented with AI can replace 100's of duds.
From my experience in some large tech firms, you could easily cut 20% of the workers and not see much impact. There is so much bloat, process-people, meetings-people, etc... Even if the cuts aren't from AI, execs will use AI as a reason to make these cuts.
There's little to no evidence that companies are actually doing layoffs to focus on "AI-enabled" work.
All there is are layoffs because of interest rates and concerns about the economic outlook. Companies using "AI" as a fig leaf justification and people are apparently falling for it.
reality - companies are choosing to spend money on CAPEX (i.e infrastructure things hoping that they can ride an uncertain wave into the future) and not spend on OPEX (humans)
reality - AI agents are not doing human jobs.
reality - money | debt is now more expensive. hence if you were spending more of it on OPEX stuff you would rather reduce that
reality - more coasting jobs in tech. demand for stuff that still needs to get done is super high - workers just need to get more distributed and not hoarded at the big paying firms
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[ 2.8 ms ] story [ 49.0 ms ] threadApparently 20% to be laid off soon.
https://www.reuters.com/business/world-at-work/meta-planning...
As for Meta, I give Mark credit for trying, even if he failed so far with all the VR stuff. The main disappointment is about Llama cause it's clearly an execution problem. With Meta's investments in AI throughout the years, not being able to compete with Anthropic and OpenAI is a big failure.
I'm the last remaining frontend developer after multiple rounds of layoffs. With claude code I'm able to do 2x-3x the work I was able to do before it existed. It's hard for me to rationally argue we need more frontend developers.
2020 and 2023 both had serious layoff spikes, but the 2023 spike trailed off to an asymptote that we're still hovering around.
https://layoffs.fyi/
Calls locked in.
All there is are layoffs because of interest rates and concerns about the economic outlook. Companies using "AI" as a fig leaf justification and people are apparently falling for it.
reality - companies are choosing to spend money on CAPEX (i.e infrastructure things hoping that they can ride an uncertain wave into the future) and not spend on OPEX (humans)
reality - AI agents are not doing human jobs.
reality - money | debt is now more expensive. hence if you were spending more of it on OPEX stuff you would rather reduce that
reality - more coasting jobs in tech. demand for stuff that still needs to get done is super high - workers just need to get more distributed and not hoarded at the big paying firms