You can admit to failing in business and customers getting sick of your enshittification as well as facing economic headwinds due to interest rates, chip-prices, and tariffs and all your bad decisions in the past....or you can layoff folks and proudly claim you're super-good at AI and riding the AI wave of the future!
The tech industry had a record expansion, but hit a brick wall due to rising interest rates...which lucky for those fraudsters, happened a year or 2 after OpenAI had their first release. I remember Marc Benioff being one of the very first frauds to AI-wash, claiming he didn't need those workers because their AI was soooo good....yet he has no demo and doesn't want to earn a FORTUNE selling this magic AI that can replace so many jobs at an advanced big tech company like Salesforce????
They have a long history of claiming to lay off people due to advances in AI, but in reality, all evidence points to there being none. They simply didn't want to advertise their overhiring in the past and the economic headwinds they're facing...especially with the Trump administration, which has taken vindictiveness to a level never seen before. If a major company lays of 5% of their workforce and blames economic headwinds, most of which were DIRECTLY CAUSED BY THE TRUMP ADMINISTRATION'S TRADE WAR, then they risk getting on his radar...and no one wants that. Love Trump or hate him, if you're a CEO, it's very bad for business to be on his bad side. It's best to avoid confrontation and wait out until his term ends or all the cocaine and cheeseburgers finally catch up with him.
Life was a LOT better for the tech companies 4 years ago. Interest rates were super low. Globalization and free-trade hit their peak. The economy was in much better shape. Record number of people were falling in love all over again with their devices due to lockdown. The future was bright.
Today, the future is VERY uncertain. Admitting that makes you look weak...so they lie outright to investors....Oh...we didn't overhire...oh no, we're not being DESTROYED by the RAMpocalypse + Tariffs!!!!!....people aren't losing interest in our products due to our late-state enshittification. We're laying people off because we're so amazing at AI.
I use Claude daily. It's cool. It's fun to play with. I can do things with Claude I couldn't do before....but.....not a fucking thing I do with it is related to what I am paid for. For my actual job?...IT SUCKS ASS!!!! I've used it daily for 2 years, by employer mandate. I can say the code it generates compiles successfully more often. Now I get compilation failures weekly instead of daily. But the code it generates is wrong, daily....objectively wrong...meaning it understood my intent and made an objective error. I never count it when it fails due to me giving vague requirements. In the end, it takes Claude longer to do my job than it would have taken me to do it myself...literally....even if it got it right the first time!...it churns for 15 minutes doing a task I can do in like 30 seconds to a few minutes. Adding in the frequent error correction, it does my job much worse than I do. It's good at letting me do other people's jobs...but in there are caveats:
1. I am paid to do my job, not other people's jobs.
2. For other people's jobs, I don't know enough to know if it did the job correctly or not. For example, I don't know how to write a React UI....so having claude make me one...well, I can tell you if it loaded without error, but I beyond that, I don't know if it did an adequate job, good job, or shit job.
3. If you force me to learn how to write a UI in React, I'd get better with time and become a more valuable asset to my employer. By throwing it to an AI, well, I am not learning much.
So is AI helping my team? We don't know. I can't say no for sure, but I am pretty confident it's not helping much. My boss doesn't know either...nor does his boss. We know we want to be super proficient in leveraging AI. But our velocity has gone down, not up...which again, we are not even sure if it went down to AI or just this year's requirements & workload are more complex than last year's. Story points are a very crude estimate...but if Claude was as magical as they say it is...we'd know...the story point boost would be high enough it wouldn't matter if we did a great job at consistently estimating.