Some employees can be replaced by AI. That part is true. It's not revolutionary (at least not yet) — it's pretty much the same as other post-industrial technologies that have automated some types of work in the past. It also takes time for industries to adapt to these changes. Replacing workers couldn't possibly happen in one year, even if our AI models were more far more capable than they are in practice

I'm afraid that what we're seeing instead are layoffs that are purely oriented at the stock market. As long as layoffs and talk about AI are seen as a positive signal for investors and as long as corporate leadership is judged by the direction the stock price goes, we will see layoffs (as well as separate hiring sprees for "AI Engineers").

It's a telltale sign that we're seeing a large number of layoffs in the tech sector. It is true that tech companies are poised to adapt AI more quickly than others but that doesn't seem to be what's happening. What seem to be happening is that tech companies have been overhiring throughout the decade leading up to the end of COVID-19. At that time hiring was a positive signal — now firing is.

I don't think these massive layoffs are good for tech companies in the long term, but since they mostly affect things that don't touch direct revenue generating operations, they won't hurt in the near-term and by the time company starts feeling the pain, the cause would be too long in the past to be remembered.