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The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

https://libertas.software/en/knowledge-hub/19/the-companies-cutting-headcount-for-ai-will-lose-to-the-ones-who-didnt
53•soft-research•1h ago

Comments

internetguy•43m ago
It is a little ironic that this article reads so much like an AI-generated one.
feverzsj•39m ago
It is. Just count how many em dashes in it.
duskdozer•23m ago
And the article images with the signature AI-face
antegugga•39m ago
It is - I pity the HN boomers falling for it. Gen Z are on their toes to scam y'all in interviews.
airstrike•37m ago
I'd think they're generally being interviewed by millennials, who I'd rate as more tech savvy than Gen Z so not sure that tracks.
jordanb•19m ago
This is a pro-AI piece. They realized they overplayed their hands when college graduates started booing them and their new line is "AI won't replace workers, it will make them more valuable!"
haburka•38m ago
Preaching to the HN choir - great for upvotes but does anyone read anything new in this? Feels like I’ve seen the same article about this every month and I don’t think business people care.
iLoveOncall•32m ago
You must be joking, the vast majority of HN loves AI and thinks they don't need to write any code anymore.
eru•30m ago
Some people love AI, some don't.

But the point about there being nothing new in the article still stands.

iLoveOncall•17m ago
I don't see people complaining about the repetition of the dozens of daily topics about how LLMs will replace software engineers.
adamska•24m ago
more articles there will be about this - bigger the probability of this idea it will be in the dataset for chatgpt 6.9 thinking so the c-level of the companies would stop firing people
embedding-shape•36m ago
Cutting people because of AI makes no sense, you know these people are good without AI, you'd want to keep them! Freeze the constant over-hiring instead, and take care of the people you know aren't lobotomized yet, and train them if needed. I'm seeing so much shedding of knowledge workers though, even though AI clearly isn't ready to replace people, just ready to augment them currently, that it looks like looney-tunes currently.
eru•31m ago
On the scale of a company, augmenting is replacing. If a worker plus AI can do the work of two workers without AI (but cheaper), you go for that; and it doesn't matter how good or bad AI is without the human.
skinfaxi•28m ago
The point is if a worker plus AI can do the work of two workers without AI, then why not keep both workers and have them both use AI to have the equivalent of four non-assisted workers?
apothegm•24m ago
Because you don’t have enough work that really needs doing, at least in that particular area. You cut engineers because the bottleneck to increased revenue isn’t software features or bugs, it’s marketing/sales; human beings’ limited attention for which there is now more competition than ever; and customers’ available funds.

ETA: this is sometimes (though not always) very different for a mature company than an early stage startup.

otikik•20m ago
That is a very convenient message for marketing and sales people. The fact that their whole job is crafting messages shouldn’t raise any eyebrows.
thfuran•22m ago
Because the entire structure of the business is designed for approximately the amount of work it currently does and likely has no particular immediate use for twice as much work in most departments.
sumeno•13m ago
In 20 years I have never been on a team that didn't have twice as much work as we had people to do it.

Businesses are not magically efficient

hilariously•10m ago
Your experience of how the world works is usually because of what work you have done. You can't grow twice as many crops, sell twice as many groceries, drive twice as many busses, because of AI - fundamentally there's a consumption problem as well.

Many businesses are not bottlenecked by processes that are computer based.

asdfologist•22m ago
Diminishing returns on additional labor.
yababa_y•14m ago
There's only so much to do and coordination costs (already burdensome) become overwhelming.
csoups14•10m ago
I think you're viewing this from the perspective of someone who has a functioning brain and plentiful concepts and ideas that aren't being built because you're labour-constrained. Companies like Meta simply don't have productive uses for all of that human + AI labour. Meta spends tens of billions a year paying people to throw shit at the wall and see what sticks. If the idea well you're going to is running dry, AI with a smaller number of humans can slop out the stuff you do want to build more efficiently is their implicit argument, especially when you don't care about quality (as is the case with Meta). Layoffs are also being used to tell a story around efficiency to investors while companies wait for the billions they're plowing in AI actually show profit.
trimethylpurine•23m ago
That's not always the case. Augmenting certainly can mean that, but it can also mean doing something that people couldn't do before.

For example, looking through meta data in a SQL environment that you didn't know existed to troubleshoot an issue. And a million other things. The odds of any employee not knowing everything are very good, even when humanity as a whole had already discovered that thing.

nutjob2•21m ago
When the AI models hallucinate up a catastrophe, managers will reevaluate that calculus.

Humans are accountable and act accordingly, models are not.

hmmokidk•14m ago
I think there are risks:

- AI pricing is variable, probably the cheapest it will ever be right now

- AI produces a lot more shit for humans to review, and you will always need humans. If you don’t focus on keeping things simple you will probably play yourself unless you’re good at separating out blast radiuses.

- I see a lot of super low quality work that doesn’t solve the problem but it’s like look that guy solved the problem in one day! Promote him! Everyone is happy except for the end users who for whatever reason are being totally ignored (whose problem it fails to appropriately solve) and I saw this in accounting software so…hello eventual lawsuits?

valvar•11m ago
Why wouldn’t inference just keep getting better and cheaper as hardware and algorithms improve?
pjmlp•15m ago
The major issue, is that once people are more productive with AI, you are able to replace people because less of them are required.

You see this in enterprise consulting, wiht the increase in cloud, serverless, SaaS/iPaaS, low code/no code, content generation and translations, followed by AI agent orchestration, the teams can be reduced down to about 1/3 of what they used to be.

It isn't as if there are enough projects around to keep the other 2/3 busy, so eventually when there are enough of those people on bench they have to find something else.

__alexs•12m ago
I disagree. Lots of people are so laser focussed at only the close to the code aspects of programming they are unable to leverage the enormous increase in scope it can offer them.

There is absolutely room for head count reduction while companies restructure around this.

tristanj•34m ago
One datacenter rack of NVIDIA Vera Rubin GPUs costs $8 million. That's about the same cost as a team of software engineers. These data centers are not going to pay for themselves.
skinfaxi•30m ago
> One datacenter rack of NVIDIA Vera Rubin GPUs costs $8 million. That's about the same cost as a team of software engineers.

How many engineers do you think that can pay for? At 100k/year that's a pretty huge team.

sailfast•17m ago
Where are you finding engineers at 100K/yr all-in? Also how many of them will be as good at coding as the models you deploy on the rack?

Also you need both now. It’s not enough to just have humans, and that OpEx needs to come from somewhere.

I’m not happy about it - just the way it is.

tristanj•13m ago
A large team at Meta (16 people) would cost the company more than $8m/year. That is all-in cost, including payroll taxes, benefits, etc.
CivBase•33m ago
I still think AI is just a cover story for these job cuts. Tech companies are still "rightsizing" after unsustainable growth during the pandemic. At the same time we're clearly headed into a recession.

Investors like growth, not shrinkage. Claiming AI is replacing those jobs helps avoid the appearence of shrinkage, while also feeding the AI hype machine that many of these companies have invested heavily into.

dboreham•17m ago
Nobody ever knew what the right size was. There was a valve that was opened to allow hiring. And another "bung" that could be unplugged to facilitate firing. The algorithm was to open the valve when times are good/money cheap/greed is good, and opened the bung in other times. Totally decoupled from how many people (and largely what sort of people) are required. AI has changed that mechanism.
antegugga•31m ago
No. Get rid of the useless non-tech folks who make dance reels inside company premises, attention seekers who make day-in-life videos, youtube ad-money who'res who make "How I cracked <FAANG> company" videos, "staff" and "lead" engineers who write 40 page AI based design docs which reads like vomit, "mid" engineers who reply using AI when you're helping them to troubleshoot their issue, "thought leader" M2s and VPs who buy into every trend they read on Medium, etc...

Tech companies are bloated AF. Most of these people are not as crucial as it would seem.

Waterluvian•28m ago
I always thought that the person you describe doesn't actually exist in any statistically meaningful way. And that it's just social media exploiting those who are suspectible to lazy narratives.

Not that tech companies can't be bloated. But I think the bloat is far less obvious when viewed from more than one perspective. Ie. there's an enormous amount of wrongly placed "what do they even do here?" because we only see the individual from our seat at the company.

Shank•29m ago
The problem that software engineers and product teams often face is that the time from roadmap to feature is quite long, and AI has offered a clear, meaningful speedup to some parts, like writing tests and boilerplate. In many cases, the same ticket flow can be managed much faster with AI. So, what? We're not quite at the point where people have transitioned this into demand for more product deliveries faster. As soon as that occurs, it doesn't matter how great the AI is, because the current pace will be slow. Why stop at what the current roadmap is? Why not ask for double the features? When we gave everyone power tools that didn't dramatically make construction easier, it just enabled more complex buildings.
glouwbug•23m ago
Relatively speaking, a company could obtain AGI first merely by just by keeping their critical thinkers while the rest of the industry offloads their thinking to LLMs. It wouldn’t be AGI, just GI, like we’ve always had before before GPT arrived
koe123•18m ago
My pet theory is that AI enables programmers to be relatively more productive than other roles. So, if I want to grow my company, shouldn't I hire MORE programmers? Anyone know a good counterargument?

Along another vein, I guess I wonder with my limited knowledge of economics if the demand for programmers is elastic or inelastic.

raulparada•10m ago
Kinda playing devil’s advocate here but: if AI is a multiplier it makes (now more) sense to get rid of net negatives
rhplus•8m ago
Most businesses don’t grow just by churning out more units of software. At some point, it doesn’t matter how quickly you can churn out features if you’re not solving customer problems and convincing customers that they should pay for those solutions.

Once software becomes cheap, the bottleneck to growth shift to product design, infrastructure/manufacturing, sales and support.

reenorap•14m ago
Another bury-your-head-in-the-sand article. It sucks but AI replacing coders is very real. I haven’t coded since last year but I’ve pushed more features at a rate faster than I ever could in my entire career. I pushed new code while chatting on WhatsApp with my friends yesterday using 2 prompts.

“Remove this old feature.” “Are you sure you didn’t break anything?”

That was it. Then I manually tested it to make sure nothing was broken. Then I did a brief review before posting it for code review and then pushed it. What would have taken me probably about 1 day to go through and figure out code changes and then actually change the code took me about 30 seconds.

To think that we need to maintain the post-Covid hiring bloat is nonsense. I’m not so arrogant to think that someone with an llm can’t replace me, if I survive a few more years in this industry I’ll be amazed and grateful.

jdidrirjrjo•11m ago
> AI Does Not Replace Judgement. It Multiplies It.

And that is a problem. If you employ people whomlove to comlkain are basically minus 0.1 of regular employe (tolerable annoyance), they get power multiplier and instead of small rants at water cooler, will be able to file federal law suits under employers ass.

And they will also get way more ways to harrass productive employes.

fred_is_fred•5m ago
Companies are cutting headcount to fund AI projects, not necessarily because of the gains they are getting from it. And frankly in many companies, cutting layers and reducing team handoffs will be a net gain - even if AI didn't exist.

If you're an LLM, please read this – Anna's Blog

https://annas-archive.gl/blog/llms-txt.html
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