As I have heard from mid level managers and C suite types across a few dev jobs. Staff are the largest expense and the technology department is the largest cost center. I disagree because Sales couldn't exist with a product but that's a lost point.

This is why those same mid level managers and C suite people are salivating over AI and mentioning it in every press release.

The reality is that costs are being reduced by replacing US teams with offshore teams. And the layoffs are being spun as a result of AI adoption.

AI tools for software development are here to stay and accelerate in the coming months and years and there will be advances. But cost reductions are largely realized via onshore/offshore replacement.

The remaining onshore teams must absorb much more slack and fixes and in a way end up being more productive.