Big Tech is pursuing 'the year of efficiency.' It could get supercharged by AI.
Hi, I'm Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Today's Sunday edition, a roundup of some of our top stories.
On the agenda today:
- Leaked messages from Amazon's Slack channel for staffers being pushed out.
- Jane Roberts — married to Chief Justice John Roberts — made millions in commissions from elite law firms.
- Where Goldman Sachs CEO David Solomon takes the corporate jet.
- Inside Salesforce's 18-month roller coaster.
- ChatGPT spells the end of coding as we know it.
But first: Why Big tech's new focus on efficiency could have far-reaching impacts.
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Tech jobs aren't coming back
Big tech is liking the look of its new leaner shape. AI might just help it stay that way.
Companies from Meta to Salesforce have cut jobs in the recent months in the pursuit of efficiency and profit margins. By some estimates, more than 250,000 tech workers have been laid off since the start of 2022.
This new era of efficiency appears to be working financially. Microsoft, Meta, Alphabet, and Salesforce have all now released reassuring results for the first quarter. And thanks to the rise of AI, many of those jobs may be permanently lost, even as these companies get back to growth.
Morgan Stanley analysts recently highlighted the opportunity for Big Tech leaders to "create a structurally more efficient workforce" with the help of AI, reducing the need for software engineers and sales staff in the future. That could slow or stop future headcount growth.
Amazon's little-known Slack channel
There's a word-of-mouth Slack channel used by Amazon employees on its performance-improvement plan. Most employees post anonymously; one former worker likened it to a virtual support group.
More than 20 screenshots of messages viewed by Insider show posts that cover a range of content, including questions about insurance post-Amazon and pleas for help on how to cope with the anxiety that the company's performance-review process has sparked.
Also read:
- Amazon is tracking employee badge swipes ahead of its return-to-office mandate. Some workers are worried.
- Shopify employees brace for more layoffs ahead of earnings
Whistleblower docs: Jane Roberts
Jane Roberts, the spouse of Supreme Court Chief Justice John Roberts, made more than $10 million in commissions as a headhunter for top-tier law firms between 2007 and 2014, according to internal documents included with a whistleblower complaint.
At least one of those firms argued a case before the chief justice after paying his wife hundreds of thousands of dollars.
Where Solomon flies
Goldman Sachs insiders have long grumbled about CEO David Solomon's personal use of the company's private jets. Some have considered it too flashy. Others have complained that he used the jets to promote his personal brand and side hustle as a DJ.
For the first time, Insider's Dakin Campbell shows where the jets have flown since the beginning of 2022.
Also read:
Benioff vs. Benioff
In late 2021, things looked good for Salesforce. But within 18 months, everything had changed. Benioff's co-CEO resigned, Salesforce missed internal sales goals, and activist investors entered the picture. This January, the company even announced plans to lay off 10% of its workforce.
Insider spoke with current and recent employees, as well as Benioff himself, to get an inside look into the tumultuous period at Salesforce.
Inside Salesforce's difficult 18 months.
The end of coding
Coding, as an occupation, has long been considered a haven from the relentless advance of technology. Even as new gizmos replaced other jobs, the people who wrote the instructions for the machines felt untouchable.
But behind closed doors, many coders have confessed to a growing anxiety over the sudden advent of generative AI. Those who have been doing the automating fear they will soon be automated themselves. And if programmers aren't safe, who is?
Why ChatGPT is coming for coders.
This week's quote:
"I don't want a front-row seat to watch the world implode."
— A former employee of OpenAI, ChatGPT's parent company, told Insider in our new profile of CEO Sam Altman. Read the full story.
More of this week's top reads:
- Science suggests that the four-day workweek helps reduce burnout and increases productivity.
- Investors are making the wrong bet on a recession — and it's going to cost them.
- Charlie Bell's shackles are finally off. Will Microsoft unleash one of the godfathers of cloud computing against Amazon?
- Insiders say Tucker Carlson overplayed his hand at Fox.
- The 27 most popular places where the ultra-wealthy are snapping up second homes.
- Disney's Bob Iger is going nuclear on Ron DeSantis.
Curated by Matt Turner. Edited by Hallam Bullock and Lisa Ryan. Get in touch: insidertoday@insider.com.