Despite yet another round of tech layoffs, the fear around AI shouldn’t be augmented.
Transcript:
Caroline Woods: It looks like Microsoft is the latest tech company to cut jobs, once again. We had Amazon warning that AI is going to shrink its workforce. They need to do more with less. What impact do you think AI will ultimately have on jobs?
Shay Boloor: So I actually have a wonky thesis on what I think is going to happen with jobs. It’s not going to be as disruptive as people think. I think the first wave is going to seem very disruptive because workforce is going to evolve in this AI future. So what do you have to do in that evolution? Remove the positions that aren’t required for that future. So we’re getting 4% layoffs today in Microsoft. You’re seeing Meta do layoffs. You’re seeing the Amazon CEO create that letter of like there’s going to be disruption. Everyone be prepared. I think that’s just the first wave. But in every revolution there’s been job expansion. Do you think Microsoft is going to have the same headcount in five years that they do today? I think the consensus is, yes, it’s just going to be a different kind of job in that process. So the first wave, 10% reduction, probably maybe 15% in the next two years. But once that happens, I think there’s going to be a pick back on New hires and the third and fourth wave.
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