A friend of mine at Amazon got laid off during their big stupid AI push last year and yeah, being paid like $150k a year sounds nice until you realize that only covers basic living expenses in, say, Manhattan. Now was Amazon right to fire so many people for basically no reason? No, but software on its own is no longer marketable. One person can generate a hundred times more code than before the advent of LLMs, so you only need one person to do the job of a hundred. Now, it takes some skill, that takes years to develop, to use LLMs effectively in the workplace, so Amazon was incredibly short sighted to believe it was just some magical box that fixed everything automatically. But that doesn’t mean companies won’t be making similar moves, in the aggregate, in 10 years, when leaner competitors come to rip a chunk out of their profits. Do you see the capex of major tech companies now? They are _scared_, they have every right to be. You have to be just as nearsighted as those Amazon bosses to believe that things will continue as they always have, that this is just a short dip in a long term regression to the mean.
reply> most tech workers don't have bad pay or benefits anyway.
replyBut what if they could be even better? This is an industry with 75-80% gross margins, quite unlike any other industry in history.
But despite those margins, it's also an industry with a LOT of unprofitable businesses, unlike any other industry in history. From many people's perspective, if they already earn well, why rock the boat in a high effort high risk way so that the union can negotiate an 8% raise instead of a 4% raise. I don't need the money. And the bad to worst case outcomes could give me serious irreversible buyers remorse.
reply> I don't need the money.
replyI promise you, management doesn't think that way.