IMO, this is a not-wrong but less insightful perspective on what Ed Zitron talks about in The Rot Economy. Cycles of overhiring and layoffs happen, but they're not the core mechanism. AI isn't the cause, but it's also not a scapegoat. It's just the current placeholder, like blockchain and the metaverse, that allow companies to have their valuation based on growth rather than profit.

https://www.wheresyoured.at/the-rot-economy/

Right, AI isn't the reason, but it sure as hell is an accelerant and part of the pattern that ultimately is extremely unsustainable. It's going to be really ugly when it ends but it's inevitable.

Your linked article seems aligned with https://www.slatestarcodexabridged.com/Meditations-On-Moloch