A brand new metric referred to as “income per worker” appears to be behind tech layoffs, claimed Instagram person @prashpectives. Nevertheless, commenters of his shared quick video mentioned that the brand new metric isn’t solely new. In truth, it has been current for many years.
What’s new is that, with the presence of synthetic intelligence (AI), firms predict a a lot increased RPE, with one commenter saying that tech layoffs really stem from firms evaluating “income per bot vs income per worker”.
Consumer @prashpectives outlined RPE as the full income of an organization divided by its complete variety of staff in a 12 months.
Citing examples, he shared that Indian multinational know-how firm Tata Consultancy Companies (TCS) makes about US$50,000 (S$63,500) in income per worker, whereas Amazon makes round US$500,000 per worker. Now examine that to an AI-native firm like Anthropic, which pulls in a mind-boggling US$2.15 million per worker — that’s a ten instances to 50 instances distinction.
He defined that whereas buyers used to care about progress price, complete income and even profitability, now they only need “effectivity.”
“Each worker must justify their value by driving income.” This, he says, is why firms are slicing center administration, kicking out non-revenue-generating groups and flattening their constructions. It’s additionally why tech shares have been crashing within the US and India, as buyers imagine firms can increase income per worker utilizing AI instruments like Claude Code.
Advising tech staff on the best way to keep away from being laid off, he provided two suggestions: transfer in direction of “safer” revenue-generating roles, like gross sales and product engineering, and turn out to be AI-natives.
He provides, don’t merely use AI instruments — use them in a approach that “genuinely” amplifies your output. One particular person doing the work of three with the usage of AI would be the one getting rewarded with the brand new “income per worker” metric.
Whereas AI is usually marketed as a technique to make work simpler and sooner, the market proper now’s targeted on “extracting extra productiveness,” he mentioned. To outlive, staff have to adapt. /TISG
Learn additionally: AI is taking the blame for layoffs — however analysts say it’s actually tariffs, overhiring, and cost-cutting
