Both Meta & Microsoft have said they're shedding staff explicitly to free up cash flow to invest in AI;

on one level this is unemployment linked to technology, but its a bit different from *actual* technological unemployment - the latter sees people losing jobs due to the deployment of technology to do their jobs. Microsoft & Meta on the other hand are sacking people to take a (bigger) punt on a business strategy that is yet to prove its transformation of productivity.

#AI #workers
h/t FT

@ChrisMayLA6

I was at Microsoft when the pandemic hit. Amy Hood told all of the employees that they were not going to rush into hiring (unlike many competitors) because they wanted sustainable growth. Hiring people to deal with a spike in demand and then firing them when the spike subsides would be bad for everyone, she said.

Since then, Microsoft has got rid of about 20% of the workforce. That counts only people in the big redundancy rounds. A lot of people I respected left voluntarily and they ended the policy that orgs reclaim headcount when people leave and so can hire replacements: if someone left, you needed to explicitly request new headcount from your management to get a replacement. A lot of the folks who left had their role filled by promoting someone else, who was then not replaced.

The culture of lying to management means that the senior leadership has no idea how under resourced most of the critical revenue-generating business units are. Anyone who tells them anything other than ‘everything is great, I bet we don’t even need all of the people we have!’ gets a reduced bonus and learns not to do it again.

The company reminded me of a dead oak tree. It looks strong from the outside but a single storm could knock the whole thing down.

@david_chisnall @ChrisMayLA6 A pet hate is where expert gamers or game developers determining the user experience of games they develop. The 'Easy' level to them is often tortuously hard for me.

They should have a set of testers who represent the public better. Then watch them behind one way mirrors ...

@david_chisnall @ChrisMayLA6 somehow I’m not even slightly surprised.

@david_chisnall @ChrisMayLA6 You have to be a bit careful with the "headcount" figure, as sometimes very creative bookkeeping is used.

I used to work for GE in the '90's, every quarter we got idiotic headcount limits from the States. In Europe they had a deal with a local IT company (owned by an ex-GE manager), every time the headcount went down, people were transferred from the payroll to that IT company (so costs moved from Payroll to IT budget, but effective headcount didn't change).

@wanwizard @ChrisMayLA6

That was not happening at Microsoft. Contractors were the first to be let go because they have higher overheads and are on fixed-term contracts. And that was not counted towards the layoff targets.

@david_chisnall @ChrisMayLA6 Having also done my time as Microsoft, pre-pandemic: can confirm that it is basically run like a group of warring states.
@david_chisnall @ChrisMayLA6 I hope you are right. A world without Microsoft sounds good right about now.
@david_chisnall wallah I’m praying for wind

@david_chisnall @ChrisMayLA6
> The culture of lying to management means that the senior leadership has no idea how under resourced most of the critical revenue-generating business units are

I have often joked that any sufficiently large organism or company is indistinguishable from Communism (obviously any target-focused totalitarian regime will do)

@ChrisMayLA6 @jonpsp @david_chisnall Yeah, I’m sure the MS VP of ensuring he gets his bonus though the win11 start menu is a non-functioning memory-hogging electron crapheap and the Russian army officer who pocketed the entire tank maintenance budget prior to the Ukraine invasion would have a lot in common if they ever met

@h0gh @ChrisMayLA6 @jonpsp @david_chisnall

The "VP of ensuring he gets his bonus" might as well be an actual title at a lot of companies.

@david_chisnall @ChrisMayLA6 Oooh, that reminds me a lot of Andor's portrayal of authoritarian structures. The core making decisions having no idea what the problems of the edge are, the edge being afraid to tell the core since that would likely imply further trouble