I think this is important:
> When a company says “AI made everyone more productive, so we need fewer people”, I want to see the evidence - and I don’t believe it exists today. Show me that x% of your workforce is genuinely idle (or even just underutilised) because the work can now be done by fewer people. Even then: I’ve never seen a product/SaaS company that didn’t have an endless roadmap. If you got a free headcount increase essentially overnight, why wouldn’t you use it to deliver more value to your customers, faster? That should show up as MAU, conversion, revenue.
I see some people calling for calm instead of AI panic by invoking Jevons Paradox. But at least within these companies there's no good evidence of Jevons in action, is there? The roadmap is endless, but when employees are perceived to be idle they get fired instead of being assigned more (or more ambitious) tasks.
To be fair, one could claim Jevons applies to "the market" at large, but at least we can say the evidence from tech companies is not encouraging. So maybe it is, indeed, time to panic a bit?
> Choosing the layoff instead tells me the productivity claim is doing PR work for a decision that was already made for other reasons (over-hiring, investor pressure, take your pick).
Yup, I think we all suspect this. Though it's probably a mix of the two factors.
> So maybe it is, indeed, time to panic a bit?
Anyone relying on a steady paycheck from an employer should panic a bit all the time, because nothing can save them from bad management. The reference to Jevons Paradox doesn't say anything about individual managers responding correctly. If 30% of managers screw up, that's a lot of collateral damage.
Now to respond to your actual point, I don't think software developers should panic. Even if pure software engineering gets hit hard, I'm having trouble imagining a scenario where years of software development skills plus knowledge in a specific domain isn't a good thing for current software developers. This is unlike what happened with international trade, where you had 60-year old textile workers losing their jobs, no alternative jobs, and no policy being offered to compensate them for the effects of trade.
Yes, it's the "market" argument that I find compelling. That is, not jevons within firms, but rather across them.
Is it true that the evidence in tech so far is not encouraging? I was pretty worried about the job market a year or so ago, but it seems pretty good for experienced people at the moment, no? (I do have big concerns about the entry level pipeline though!)