Comment by tonymet
If AI is truly this effective, we would be selling 10x-10Kx more stuff, building 10x more features (and more quickly), improving quality & reliability 10x. There would be no reason to fire anyone because the owners would be swimming in cash. I'm talking good old-fashioned greed here.
You don't fire people if you anticipate a 100x growth. Who cares about saving 0.1% of your money in 10 years? You want to sell 100x / 1000x/ 10000x more .
So the story is hard to swallow. The real reason is as usual, they anticipate a downturn and want to keep earnings stable.
Exactly. If the AI can multiply everyone's power by hundred or thousand, you want to keep all people who make a positive contribution (and only get rid of those who are actively harmful). With sufficiently good AI, perhaps the group of juniors you just fired could have created a new product in a week.