Comment It's signaling to the investors of course (Score 4, Interesting) 166
Laying off people typically means higher profits, plus you can claim that AI will replace them anyhow, signaling that you believe in AI. For Investors, that's important.
Of course we have seen largely overinflated engineering teams at big-"tech". Compare, for example, the size of the Android team to the one of a comparable project like Windows. While there were, at peak times, around 100 people working on Windows, the Android team recently had hundreds of people laid off, so there must have been many more people working there. This is why Android is so much more complex than, say, a typical version of Windows.
Having such immense resources will lead to unnecessarily complex solutions. Why think hard to solve a problem, when you can just throw 50 people at even the most trivial problem. If you set the standard, this will in fact give you an advantage. Any competitor will have to spend almost the same amount of resources to clone your product. This is why "Linux on Windows" is so much simpler than "Wine". Linux follows many of the UNIX principles, making it a much simpler system.
In a way most innovations in IT were ways to reduce complexity. This is something we are dearly missing today.
However there is something else we might see now. Complex solutions require a lot of resources to maintain them. If you have an organization with complex solutions built by many people, and then fire people... those people might not be enough to maintain the solution. We have seen that with Twitter some years ago.
This may happen in other areas, too.
However there is some beauty in it. It'll mean change. Those laid off developers will perhaps start their own projects or companies, replacing big-"tech". We might get a new era of innovation, perhaps a bit like we did in the early 2000s.