Post B6HsQi5uQn4chdDkbg by rysiek@mstdn.social
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 (DIR) Post #B6HsQhIzMfwSFuKgM4 by rysiek@mstdn.social
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       Shot:CloudFlare fires 20% staff claiming it's because of "AI"-related productivity gainshttps://techcrunch.com/2026/05/08/cloudflare-says-ai-made-1100-jobs-obsolete-even-as-revenue-hit-a-record-high/Chaser:Since that announcement CloudFlare stock lost 22% of value.Even investors seem to not be buying the "AI productivity gains" bullshit anymore. :blobcatcoffee: #AI #CloudFlare #Layoffs #Bubble
       
 (DIR) Post #B6HsQhYaQgQ12Hd8fQ by rysiek@mstdn.social
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       More likely *actual* reasons for those layoffs in general in the tech industry – I am too lazy to look into CloudFlare specifically:Section 174 tax shenaniganshttps://qz.com/tech-layoffs-tax-code-trump-section-174-microsoft-meta-1851783502Overhiring during COVIDhttps://edition.cnn.com/2023/01/22/tech/big-tech-pandemic-hiring-layoffsFiring people to fund data center build-outs which banks no longer seem interested in lending money forhttps://www.cio.com/article/4125103/oracle-may-slash-up-to-30000-jobs-to-fund-ai-data-center-expansion-as-us-banks-retreat.html
       
 (DIR) Post #B6HsQi5uQn4chdDkbg by rysiek@mstdn.social
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       And yes, managers outright admit they are using the "AI productivity gains" lie to explain layoffs because it works better with stockholders than admitting the real causes behind them:https://www.resume.org/the-great-turnover-9-in-10-companies-plan-to-hire-in-2026-yet-6-in-10-will-have-layoffs-2/Funny how that did not seem to work that well for CloudFlare, huh. :thaenkin: