I think the overhiring sentiment is largely accurate, but not as it’s frequently presented.

It’s not purely over hiring, it’s that many of these companies are doubling down on AI spend(in terms of model creation, hardware investment, etc), and need to allocate their funds differently.

So it’s not AI efficiency causing the layoffs, it’s AI resource allocation.

And the reason they don’t have the funds to invest? Overhiring.

A lot of the companies doing layoffs (META, Microsoft, Amazon) aren’t just using AI coding tools, they’re trying to be the hardware and be the models behind the AI.

And they see the failure to do so as an existential threat.