- Aug 23, 2017
- 2,628
- 7,069
I don't know if y'all saw the recent news about HubSpot laying off nearly 660 people.
It could easily be seen as another massive AI layoff story but I really think there's more to why some of these software companies might be laying people off.
I think part of it might be that customers no longer see the same value in what they're paying for with some of these software tools
Especially when most of these companies just keep increasing their prices.
Some teams and businesses are now building internal tools themselves because AI has made it much cheaper to do so
Or they're simply switching to cheaper software alternatives.
And once people start asking why they should pay so much for a SaaS tool when they can build something they actually own
Those big subscription prices start looking unreasonable.
But here's where I think it gets interesting.
As more customers start cutting back on subscriptions or moving to cheaper alternatives
These software companies could start feeling the pressure on their revenue and budgets.
That pressure could lead to layoffs as they try to reduce costs and at the same time, some might decide to increase their prices to make up for lost revenue or protect their profits.
But then those price increases make even more customers question whether the software is worth paying for, pushing them towards cheaper alternatives again.
And the cycle just keeps going.
Yes, AI is still taking jobs but at the same time, it's also making it easier to replace a lot of expensive software with cheaper alternatives.
So maybe some of these layoffs aren't just about AI replacing employees.
They could also be a result of AI changing how much people are willing to pay for software in the first place.
What do you think? : )
It could easily be seen as another massive AI layoff story but I really think there's more to why some of these software companies might be laying people off.
I think part of it might be that customers no longer see the same value in what they're paying for with some of these software tools
Especially when most of these companies just keep increasing their prices.
Some teams and businesses are now building internal tools themselves because AI has made it much cheaper to do so
Or they're simply switching to cheaper software alternatives.
And once people start asking why they should pay so much for a SaaS tool when they can build something they actually own
Those big subscription prices start looking unreasonable.
But here's where I think it gets interesting.
As more customers start cutting back on subscriptions or moving to cheaper alternatives
These software companies could start feeling the pressure on their revenue and budgets.
That pressure could lead to layoffs as they try to reduce costs and at the same time, some might decide to increase their prices to make up for lost revenue or protect their profits.
But then those price increases make even more customers question whether the software is worth paying for, pushing them towards cheaper alternatives again.
And the cycle just keeps going.
Yes, AI is still taking jobs but at the same time, it's also making it easier to replace a lot of expensive software with cheaper alternatives.
So maybe some of these layoffs aren't just about AI replacing employees.
They could also be a result of AI changing how much people are willing to pay for software in the first place.
What do you think? : )




