Why does it sound like layoffs? If you keep the team size the same and use the productivity increase to deliver more business value, how is that layoffs?

Because the limiting factor for what you can deliver has never been, and still isn’t, developer productivity.

Talking point: I think it is communication, and AI (notably information exchange in “Claudish”) is not as effective there.

If I figure out a way to make my workers produce 10 times more widgets each, it doesn't automatically follow that there is a market for the extra 9 widgets. Otherwise I would have hired 9 extra workers before that invention to fulfill the market demand.

Making the widget cheaper doesn't necessarily create demand either. I will not buy 10 times more toothbrushes or writing pens if their prices suddenly decreased to 1 cent.

The demand for software or features will not increase at the speed of our ability to produce them.