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At least within my circle, that’s not really the case. Instead, what I’m seeing is more of a hiring freeze, with the budget being used to empower existing employees through AI. Which I think is a more reasonable take.
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it sounds like leverage

as a solo: you can build and ship more in your own time

as a startup: you can iterate and scale more with more velocity and less growing pains

as an enterprise: people with ideas but not a technical background can put their tokens where their mouth is and build their own interfaces, personal apps, ask their own questions, ship their own features without having to navigate layer 8 and play games for resources

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Why does it sound like layoffs? If you keep the team size the same and use the productivity increase to deliver more business value, how is that layoffs?
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Because the limiting factor for what you can deliver has never been, and still isn’t, developer productivity.

Talking point: I think it is communication, and AI (notably information exchange in “Claudish”) is not as effective there.

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If I figure out a way to make my workers produce 10 times more widgets each, it doesn't automatically follow that there is a market for the extra 9 widgets. Otherwise I would have hired 9 extra workers before that invention to fulfill the market demand.

Making the widget cheaper doesn't necessarily create demand either. I will not buy 10 times more toothbrushes or writing pens if their prices suddenly decreased to 1 cent.

The demand for software or features will not increase at the speed of our ability to produce them.

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