This afternoon, we sent the following email to our global team. One of our core values at Cloudflare is transparency, and we believe it's important that you hear this directly from us because it’s a major moment at Cloudflare.
Because people are too poor to purchase the extra output, assuming that the AI has actually lead to better productivity.
When there isn’t enough aggregate demand to absorb extra output from productivity gains, firms will opt to increase profits by reduce their costs by cutting back on spending instead.
Since they’re using (now expensive) genAI and productivity isn’t improving, because it almost never does, rhen they need to do something to appease stakeholders and offset the cost of using genAI, ofc.
That and keeping employee’s perception of power and self worth down, so they keep working their asses off in the hopes of not being the next in line.
I think it might be very hard for AI-pilled leadership to back off from their claims and AI mandates and it would not help the hype that they might be banking on/profiting from.
ok, if they are profiting from genAI (and cloudflair has the means to run their own with out the big 3 or 4) then turbo charge that advantage by keeping the 1000 devs that are running all these agents. if they are not, keep the 100 devs and move them to developing the AI so that it works…
If teams are so good with AI, why cut the teams. Surly they could grow, develop and add value much faster if they kept the 1000 people and used AI?
Because people are too poor to purchase the extra output, assuming that the AI has actually lead to better productivity.
When there isn’t enough aggregate demand to absorb extra output from productivity gains, firms will opt to increase profits by reduce their costs by cutting back on spending instead.
Since they’re using (now expensive) genAI and productivity isn’t improving, because it almost never does, rhen they need to do something to appease stakeholders and offset the cost of using genAI, ofc.
That and keeping employee’s perception of power and self worth down, so they keep working their asses off in the hopes of not being the next in line.
If productivity is not improving with the use of “(now expensive)” genAI, then turn it off, not lay off
I think it might be very hard for AI-pilled leadership to back off from their claims and AI mandates and it would not help the hype that they might be banking on/profiting from.
ok, if they are profiting from genAI (and cloudflair has the means to run their own with out the big 3 or 4) then turbo charge that advantage by keeping the 1000 devs that are running all these agents. if they are not, keep the 100 devs and move them to developing the AI so that it works…