UpTrajectory Review
This article discusses the evolving landscape of job roles within tech companies as influenced by AI advancements. Despite significant layoffs at Cloudflare, the company has seen a substantial increase in its engineering workforce, highlighting a shift in the types of roles that are becoming more valuable. The CEO emphasizes that while AI is not eliminating tech jobs, it is reshaping the workforce by prioritizing builders and sellers over measurers.
For small business owners, this trend is crucial to understand as it signals a need to adapt to the changing job market. Emphasizing roles that drive product creation and customer engagement will be vital for survival and growth. However, the reduction in measuring roles suggests that businesses should also consider how AI can streamline operations and reduce overhead. The key takeaway is to focus on building a team that aligns with these evolving priorities, ensuring that your business remains competitive in an AI-driven landscape.
“AI ain't killing tech jobs.” — Business Insider
Takeaway: Focus on hiring builders and sellers to thrive in an AI-driven market.
From the original item — Business Insider:
ZUMA Press Wire via Reuters Connect
- A version of this story originally appeared in the BI Tech Memo newsletter.
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BNP Paribas analysts recently spotted a striking contradiction. Even though Cloudflare cut 20% of its workforce earlier this year, the tech company’s engineering ranks have surged.
Cloudflare employed 1,308 engineers in December. That figure has climbed to 1,894, a 45% jump, according to data BNP crunched from LinkedIn.
I ran the numbers past Cloudflare CEO Matthew Prince, who confirmed the trend. So why would a company slash so many jobs while ramping up engineering hiring? His answer reflects how AI is changing the structure of companies across the tech industry, and potentially beyond.
Prince’s first takeaway: AI ain’t killing tech jobs. That’s backed up by other data. Open tech roles posted by tech companies are up 14% so far this year, according to TrueUp, a tech jobs marketplace. Open hardware engineering roles have jumped 52%.
Instead, AI is changing which jobs companies value most.
Prince says three broad groups make up most modern companies: builders, sellers, and measurers. Builders create products. Sellers persuade customers to buy them. Measurers track, audit, manage, report on, and coordinate the business.
Builders are secure in an AI world, according to Prince. In fact, he said, if Cloudflare’s builders (engineers) become far more productive with AI, he will hire even more of them.
Sellers also remain essential because customers still want to buy from people they trust, who understand their problems and can fix them.
Measurers are where the AI axe is falling, Prince said, because this new technology increasingly handles these functions constantly and thoroughly. Most of Cloudflare’s layoffs earlier this year focused on these measuring roles:
- Middle managers were cut.
- Operations shrank into a single group.
- Finance was consolidated through more automation.
- Marketing was slashed because, like in many companies, this department was riddled with measurers, the CEO said.
The result: fewer people tracking things and more investment in people actually doing the core work of building the business.
That’s a healthier reset than most AI doomer predictions — even if that’s cold comfort for those caught in the transition.
Sign up for BI’s Tech Memo newsletter here. Reach out to me via email at abarr@businessinsider.com.