Uber needs to prove that they are growing though to validate their stock value, one of the tricks used to be increasing headcount to show growth.
But other tricks include new ventures, essentially public companies and VC companies have an almost unlimited appetite for new ventures, as that is how they keep validating their future growth and stock prices.
Currently financial realities are forcing layoffs, and the AI story is covering for the "growth" validation to keep stock prices going up.
But what's next? After you've fired everyone, what's the next growth story? They'll start hiring again, for new projects, even if AI can handle the coding there is still gobs of work surrounding building a software business or department that needs meat moving it forward.
The end of ZIRP (cheap money) is precisely what ended the new-ventures/new-projects drive among big companies and turned them all to cost-cutting and maintenance mode.
But other tricks include new ventures, essentially public companies and VC companies have an almost unlimited appetite for new ventures, as that is how they keep validating their future growth and stock prices.
Currently financial realities are forcing layoffs, and the AI story is covering for the "growth" validation to keep stock prices going up.
But what's next? After you've fired everyone, what's the next growth story? They'll start hiring again, for new projects, even if AI can handle the coding there is still gobs of work surrounding building a software business or department that needs meat moving it forward.