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Comment by sumeno | Hacker News Reader

In 20 years I have never been on a team that didn't have twice as much work as we had people to do it.

Businesses are not magically efficient

Your experience of how the world works is usually because of what work you have done. You can't grow twice as many crops, sell twice as many groceries, drive twice as many busses, because of AI - fundamentally there's a consumption problem as well.

Many businesses are not bottlenecked by processes that are computer based.

But the firms in the headlines doing layoffs after layoffs aren't growing crops, selling groceries, or driving busses... They're knowledge work roles in companies selling intangible products and services. It's large corporations doing this much more than SMBs.

And I’m sure those companies also have “backlogs" due to limited labor/labor costs. There are always shelves to face, vehicles with deferred maintenance, and so on.

Obviously, there are limits: I’m not sure what my local grocery store or bus line would do with 100 new workers, but I have no doubt they could put a few people to work right away.

Well, but they aren't doing so right now, because labour has costs.

If your existing labour suddenly gets more productive, there's still a trade-off between cost and benefit to be made. And it would be a great coincidence if the optimal trade-off were exactly at the same headcount as the old trade-off under the old productivity figures.

It's more likely that the optimal trade-off for the business under the new conditions is at some other headcount.

They’re also the ones constantly hiring and recruiting because internally nearly everyone benefits to having more people “under them”, and there’s a massive HR/Talent team that doesn’t go into hibernation after a 20% workforce reduction. Organizations want to grow, not because they need to but because it’s in the best interest of nearly all individuals still on the inside.

That's why it's so important that people get some stock compensation, so that when the stock goes up when they finally fire people the incentives are aligned.

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