DOP 373: Are Layoffs Really Because of AI?

Episode 373

Show Notes

#373: A company lays off 4,000 people the same day it posts record revenue, and the stock jumps. Is that really because of AI? Or just a really good press release?

Layoffs used to mean a company was bleeding cash. Now they show up next to record quarters, and AI gets the credit. Doesn’t matter much if you’re the one who got rapidly reallocated. You still need a job.

In this episode, Darin and Viktor talk about AI as the current layoff scapegoat and what to do when you end up on the wrong side of it.

Frequently Asked Questions

Are companies really laying off people because of AI?

Not always, according to Viktor Farcic on DevOps Paradox episode 373: AI is a scapegoat for companies that need one. A public company cannot simply announce layoffs without signalling to shareholders that it is struggling, so it needs a reason that sounds positive. Viktor says every period has its scapegoat and right now it is AI, while acknowledging that some companies really are laying off people because of AI.

Why did Cisco lay off 4,000 people in May 2026?

Cisco laid off 4,000 people in May 2026 while reporting record revenue of 15.8 billion dollars and net income of 3.4 billion, up 35%, as Darin Pope recounts on DevOps Paradox episode 373. The CEO framed it as a reallocation toward silicon, optics, security, and AI, and the CFO told analysts it was not savings driven. Darin notes the stock rose 16% in after-hours trading that day.

Should large companies lay off employees regularly?

Viktor Farcic argues on DevOps Paradox episode 373, in a view he expects to be unpopular, that large companies should lay off people every once in a while, meaning replacing people rather than cutting headcount. Complacency builds, priorities shift, and someone who fit the company last year may not fit next year. Darin Pope points to Bob Pritchett’s book Fire Someone Today, which argued for letting go of the lowest-performing 5%.

Will AI token spending per engineer exceed their salary?

Viktor Farcic predicts on DevOps Paradox episode 373 that per-employee token costs will approach their salaries, and Darin Pope adds they may go beyond. Darin sketches the resulting question: an engineer costing 200,000 dollars with benefits plus 400,000 in tokens totals 600,000, so could the company have hired two more people and gotten as much output from three humans without AI? Darin expects that comparison to become the real test.

How can new computer science graduates get a tech job when hiring is tight?

Viktor Farcic admits on DevOps Paradox episode 373 that he honestly does not know, but his advice is to take a job at one of the magnificent seven companies such as Google or AWS, even for less money or for free, because everybody wants a Googler afterwards. Brand matters: Netflix engineers stand out because the company open sources work. Darin Pope adds that the human connections gained by getting in somewhere help most.

Can a software engineer refuse to use AI and still find work?

Refusing AI is a valid choice with consequences, according to Viktor Farcic on DevOps Paradox episode 373: someone who will not touch AI should not expect to be employed unless they already have a job. Darin Pope expresses empathy but compares it to declining a specialized hammer that everyone on his job site must use. He also cites Sam Lambert of PlanetScale questioning how a candidate completely opposed to AI can exist today.

What is the DevOps Paradox podcast?

DevOps Paradox is a weekly podcast co-hosted by Darin Pope and Viktor Farcic, covering DevOps, platform engineering, and modern software delivery. Episode 373 asks whether layoffs are really because of AI, working through Cisco’s 4,000-person layoff alongside record revenue, the recurring cycle of hiring and firing, rising token spend per engineer, and what laid-off engineers and new graduates can do next. Every episode page carries audio, video, and a full transcript.

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Hosts

Darin Pope

Darin Pope

Viktor Farcic

Viktor Farcic

Viktor Farcic is a member of the Google Developer Experts and Docker Captains groups, and published author.

His big passions are DevOps, Containers, Kubernetes, Microservices, Continuous Integration, Delivery and Deployment (CI/CD) and Test-Driven Development (TDD).

He often speaks at community gatherings and conferences.

He has published DevOps Paradox and Test-Driven Java Development.

His random thoughts and tutorials can be found in his blog The DevOps Toolkit.