this post was submitted on 28 Jul 2026
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Word on the web is that big tech is clueing in that AI isn't cheaper or better without at minimum intermediate level developers baby sitting it.
I'd love to believe they're also recognizing the skills gap between people entering the industry and what the industry requires is only going to be solved by them hiring and training up entry level people. Sure would love to believe it...
That training gap doesn't show up on this quarter's balance sheet, so it isn't worth addressing.
Pretty much.
I have nothing but calls for violence towards the epstein-shareholder class. Can't reform 'em. And they're fucking our kids either way.
I wonder if its in direct reaction to:
- Token price increasing (AI is more expensive than last year)
- More AI projects need more human maintenance
- More automation means more people that need to maintain said automation
- Inflation and computers increasing in price ironically make it more expensive for everything including labor. Which makes margins smaller for companies. Companies that would have made money with less labor costs find themselves paying extensive SaaS/automation/etc... costs.
- People using AI may be more expensive because...they use AI on the company dime.
Just a couple of ideas floating in my head. I am kinda neutral to AI in general. Its like a hammer to me just a tool. Good at the small scale stuff but proven pretty terrible on the maintenance side. At work AI got expensive causing management to rethink the AI strategy. Again I may be cherry-picking, but it sure feels like the above is true.
I think you're pretty on point.
EoD the subscriptions aren't generating an ROI. I could see companies justifying losses in the 1st year and not accepting it will never be viable until after 2 fiscal years is the red.
Id love to see the breakdown. I remember seeing some big tech companies that are taking on more liabilities right now and profits are temp down last quarter. At least the BIG companies.
I worked for several years in gmi(gross margin improvement), basically cost cutting. People are cheap. In general most workers are 60k-100k total compensation. The best ways were 1. Cut time per product made, make it quicker to make your product so you can make more. 2. Decrease downtime, both periodic maintenance and unexpected issues 3. In house vs outsource stuff. You need some plastic piece, it might be cheaper to outsource if you don't have the machines and expertise to do it well. 4. Increase yield and monitor yield.
None of this involves cutting jobs. Most will give higher return in savings than cutting jobs.
For example we had a process that had a 87% yield. We got new fixtures for about $50k. Yield went to 99%. Saved just under a million per year. Same jobs, no one was let go. The only downside to the workers was by increasing yield, with similar quantity required, there was less need for overtime and some people like that for the extra money. But also additional savings for company which we were not allowed to claim credit for.
People over estimate the cost of workers in total cost of product.
This is true for companies. What if a specific department is told to cut costs, and their only expenses are like...contracts and personnel?
This happens a lot in (US)healthcare. The different “departments” are actually functional different companies, so most of the companies are recording losses because they are nothing but the workers. This is how a bunch of companies went to the us govt during COVID claiming they had no money and were moments from bankruptcy.
That's possible but I never encountered it
My area has bitten the bullet and is finally hiring new entry level programmers and teaching them. It's like for the last 15 years they were just hoping skilled programmers would get cheaper
They actually expected gen-z would just pick up coding naturally because they grew up with smartphones. Peak boomer logic. God damn their lives must have been easy.
After hundreds of applications with almost no response, I was hired via a cold call. Not proper tech industry, but adjacent.
So... maybe?
Be careful with giving your information to those calls. Get the company they're working for, and the company the job is for. Just go to the target company website.
These middle men are fucking leaches.
I have been getting recruiters from Amazon and Meta soliciting a lot lately for networking roles, but both of those companies are trash. Most likely it is just a quota for the recruiters and was sent with AI, so I don't bother to respond.
I feel you.
Not sure about Meta but Amazon is the worst ! I used to tell them I was not interested, only to have another recruiter a month later cold call me/email at least 3 times a week and just keep going. After the 6(!)th time, I started auto-blocking and auto-filtering their emails. I have hundreds in my mail box over the years. I think they get reciters by the thousands then lay them off after a bit of time.
Companies are still having mass layoffs. They overhired in covid, and AI is just their excuse for laying everyone off.
I wonder how long until people stop using over hiring during covid, its a bullshit excuse. Its called being fully staffed and the profits that were made shows running skeleton crews doesn't make long term sense.
They overhired in covid because there was a surge in demand, and they expected that demand to stay. When it didn't they were overstaffed for the demand. Not everything is running on a skeleton crew. Especially in tech where there's been a huge influx in people in the last 20 years. Tech has been an oversaturated field, even before covid.
so where did all the over hired people come from before covid?
I wonder sometimes because the BIG companies announce layoffs...those people don't just sit there. They get other jobs most of the time.
Ive seen it locally where a big company removed close to 1000 people and a bunch of smaller places ate them up really quick. And then because they are smaller, they don't have to announce layoffs later on (in theory?).
So it looks like the area is going through some kinda downturn...whereas whats actually happening is headcount is exploding all over with smaller places.
I wish I studied economics. This looks fascinating. Maybe someone else can be-bunk what im saying.
I have not seen it but I am over 50 and getting close to two years out of work so I think im low on the totem. do have massive experience that no one seems to be looking for except my latest stuff.
Heh yeah pigeonholing is both good and bad.
I used to do a ton of EDI work and worked with a bunch of 60+ devs working with COBOL. Theres were the term golden handcuffs come into play.
funny thing is im a generalist who went monitoring specialist because its a natural endpoint for a generalist since it touches on everything. I found most asks for my area to want someone who is kinda an expert in all areas rather than a generalist who has touched on at various times in their career the areas. Its kinda worse actually because they want high leve expertise is specific things within specific areas. Its kinda frustrating as its like. You know these software are different but not all that hard. Its getting the concepts around them that take time to sink in.
Sounds like its hard all around!
yeah I actually can't see how young people are supposed to start their career much less the problems I have at late career. Ultimately its the same old story. They want massive education and experience and give entry level pay for it.
I hear ya. Ive had to do training at work and its surprising how little training some have in a field. But after a couple of months of training, they are 1000x times faster at doing things. They WANT to do a good job (most of them anyways). but most places ive worked at expect people to be able to do everything while getting paid entry level.
Most of the jobs I have had also had these requirements but then almost seem surprised that I can do things. Companies are wierd.
I'm still at a loss for what pigeons ever did that so many people want to put holes in them.
Nah, it's the holes in which the pigeon lives that produces the analogy. See how carrier pigeons nearly went extinct just because there came easier ways to transmit messages long distance.
It's the perceived value of expertise that is having a serious problem, not the experts themselves. Moronic executives fail to understand the value of their workers... funny how the most ignorant end up with the most pay under capitalism...
IME, no. I used to get daily or weekly outreach, I haven't seen much in a year.
At the places I work, when a req is posted we get 300+ applications in 1-2 days.
But take my experience with a grain of salt. Pacific NW, full stack, on the older end of the industry average.
I wonder sonetimes how many are bots nowadays. Im 20+ yr experience at this point and my last two jobs came from referals. Im cali so maybe different markets? Thanks for the perspective!
Referrals are king. Over half my FTE jobs and gigs came that route. Yes of the 300+ apps over half are immediately tossed, another chunk typically because we can't sponsor visas, another chunk because literally the resume doesn't match the role.
my company has hired 3 people in the past month and is looking for 5 new folks.
it's not tech though. it's entry level research and we pay like 45K to start.
we haven't hired anyone since 2023. all our tech staff have been working here for 10+ years and we only one one tech position like every 5 years.
personally i think the economic forecasts are kinda dumb. There is still a lot of demand out there and once mid-terms are over I think the economy will start growing again, esp if they can fix Trumps stupid shit that has really killed growth.
AI bubble will pop but there is still massive demand in other sectors of the economy. Try working for a healthcare company. there are so many great jobs outside of big tech, but the salaries will be lower. our senior programmer is making like 160K, not 350-500K. way too many folks are really arrogant about their salary expectations
Tech companies want more data. Gotta profit off their AI somehow. Probably pivoting to AI-targeted ads or something