If AI boosts productivity so much, why would a company lay anyone off?

Question

Say hypothetically the productivity boost from AI is 2x per employee and a company has 10,000 employees.Wouldn't number of employees be a huge point of leverage?Why would you do a layoff when your 10,000 employees are now equivalent to 20,000Aren't you technically in the best possible position for growth?

minimaxir · Accepted Answer

There isn't enough work to justify 10,000 employees. There are diminishing returns.