alt Hacker NewsAlso, whether Covid is to blame or not, all these layoffs (not just the Meta one) contradict some of the most common rationalizations I've seen for how AI won't destroy the labor market but rather expand it.
If there really is all this latent untapped need to drive a Jevron's effect software explosion that will keep developers employable, why would so many profitable companies be laying off so many workers into the transition?
I have an explanation (or rationalization, if you wish) for this.
The AI caused the developer productivity to increase (similar to other two big SW engineering productivity jumps - compilers and open source), which gives them more leverage over employers (capital). Things that you needed a small team to build (and thus more capital) you can now do in a single person.
In the long run, this will mean more software being written, possibly by even larger number of people (shift on the demand curve - as price of SW goes down demand increases). But before that happens, companies have a knee-jerk reaction to this as they're trying to take back control over developers, while assuming total amount of software will stay constant. Hence layoffs. But I think it's shortsighted, the companies will hurt themselves in the long run, because they will lay off people who could build them more products in the future. (They misunderstood - developers are not getting cheaper, it's the code that will.)