In one layoff announcement after another, we hear that AI can now do the work of a great many people, which is why far fewer people are needed to do the work. If, for the moment, we take that assertion at face value, this still leaves an obvious alternative path: instead of reducing the number of workers, companies could reduce the amount of working time. That is, rather than laying off twenty percent of the workforce, they could have everyone work twenty percent less. In fact, I’d venture that a great number of knowledge workers would be more than happy to take a twenty percent pay cut in exchange for a four-day work week. Time is very often more valuable than cash.
But the steady drumbeat of layoffs suggests that no member of the C-suite has even considered this path. Why not?
Interesting question! One response would be that if they kept people on they’d still have to pay benefits, so the pay cuts would need to be deeper than 20%. (I just realized that I’m posting this on International Worker’s Day. Workers of Silicon Valley, unite! You have nothing to lose but your Porsches.)