Originally Published 2 months ago — by Hacker News
The article discusses how AI is not directly replacing jobs but rather increasing AI-related spending, leading to cost-cutting measures like layoffs and offshoring, which impact employment more than AI itself. It highlights the complexities of software development, offshoring challenges, and the evolving landscape of tech employment, emphasizing that organizational and economic factors play significant roles in job security and industry dynamics.
American Airlines is laying off thousands of employees, mainly middle management, and offshoring some roles to India as part of a cost-cutting strategy, despite recent financial struggles and plans to compete more aggressively with rivals. The layoffs have caused significant employee distress, and the move appears aimed at streamlining operations and reducing inefficiencies, though it raises questions about the airline's future direction.
Many companies are quietly rehiring staff they previously laid off due to AI, often at lower wages or offshore, as initial AI-driven layoffs are found to be ineffective or regretted. The trend suggests a potential rebound in employment, especially in HR, despite ongoing AI investments and industry layoffs, with some AI projects being reconsidered due to costs and performance issues.
U.S. visa restrictions under Trump are accelerating the shift of high-value work to India, boosting the growth of global capability centers (GCCs) in the country, which are increasingly handling strategic and innovation-led functions, despite potential risks from proposed outsourcing taxes and trade tensions.
Originally Published 4 months ago — by Hacker News
A Stanford study and various expert opinions suggest that AI adoption is contributing to a decline in jobs for young U.S. workers, with organizations preferring automation over human labor to maximize rent extraction. The discussion highlights concerns about offshoring, the impact of AI on white-collar jobs, and the broader implications for the economy and employment, emphasizing that AI is being used primarily to cut costs rather than augment human productivity.
The retirement of baby boomers is causing a labor shortage that is likely to continue and worsen, leading to a "Forever Labor Shortage." This will result in a competition for workers, leading to higher salaries, better benefits, and faster promotions for younger workers. Companies will also be forced to employ those they have long shunned or ignored. However, employers will not take this lying down and will introduce innovations such as offshoring and eliminating the need for workers altogether.
Finding a remote job in the US is becoming more challenging as the number of job postings is declining, and some remote jobs are being outsourced overseas. Companies are saving on labor costs by outsourcing jobs like software developers, HR professionals, and payroll administrators to countries like India. Roughly 10% to 20% of US service support jobs could move overseas over the next decade. However, the ability to apply for any remote position is still a huge advantage for job seekers, even as postings decline.
