"dev", "designer", "manager", etc. aren't interchangeable machines in the same way that compute instances are; they're human beings! Would you personally work for this "AWS for employees", with no job security, with no consistent working relationships with other people, with no knowledge of why you are doing the things you are tasked besides "the algorithm said I must do it, so I do it"? I know I wouldn't.

Fortunately, this is a horrible idea that has essentially zero chance of becoming reality, as things like stable work relationships and a sense of purpose boost productivity, making employees more productive per unit labor cost than a Mechanical Turk for making more Mechanical Turks.

Isn't it basically outsourcing outfits?

Yeah, but "outsourcing outfit" won't get you billions in VC funding the way "AWS for employees" will.

This sounds like the story Manna [1] by Marshall Brain.

In the first half of the story, employees are increasingly micro-managed by a centralized software program which becomes more sophisticated and ubiquitous over time until humanity becomes fungible.

[1] https://marshallbrain.com/manna1.htm