The AI Layoff Trap

Re:The AI Layoff Trap by efitz on Monday April 13, 2026 @03:05AM (#47748668)

AI layoffs are very shortsighted IMO and should be viewed by investors as a sign of weakness in management or the business itself.

If everyone is going to increase productivity by some factor k per employee, then kx is the new norm of overall productivity of x employees.

If you lay off some percentage Y of your work force, then your expected gains will only be k(x(100-y)/100). In other words, you will not recognize the same productivity gains as your competitors that chose not to lay off.

Yes I realize it is more complex than that, because of reduced opex, but there are diminishing returns very quickly.

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Re:The AI Layoff Trap by fastforwardius on Monday April 13, 2026 @11:16AM (#47753248)

There are productivity gains to be had by reducing amount of communication and internal layers IMO.

I believe there are also diminishing returns on new features/products (in general case). So you won't really need that many people.

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