> Their internal AI use is exploding, which is a signal that they need to structure for that, and so they’re laying people off as one of the first steps towards actioning that signal.

I don't see anywhere where the jump from "structuring for AI" directly leads to "laying people off", unless "structuring for AI" means there is less work for people to do, do you?

I think it means - we're spending more money on AI thus we don't have as much to spend on people

This will surely end well

They have been hiring like crazy year after year. Undoing 1 year of hiring is not the end of the world.

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Noone knows what the correct structure for this new world looks like. We’ll see what they end up hiring for. But it’s fairly standard to lay off a bunch of people and hire new, rather than retrain, when you need to restructure