The rapid advancement of artificial intelligence (AI) is transforming industries, and the tech sector is at the forefront of this change. While AI promises increased productivity and innovation, it also raises concerns about job displacement. This is the story of Shawn K, a software engineer who experienced this firsthand, going from a six-figure salary at a metaverse company to relying on gig work and selling possessions online.
Shawn’s layoff approximately a year ago highlights the precarious situation faced by some tech professionals in the age of AI. His experience, while concerning, may become increasingly common as companies explore AI-driven automation to optimize costs and streamline operations. In an email exchange with MaagX, Shawn shared details of his layoff from Virbela, a subsidiary of eXp Realty specializing in metaverse solutions for remote work. Virbela creates virtual environments designed to mimic real-world interactions and facilitate remote collaboration.
According to Shawn, his work at Virbela became increasingly AI-focused in the months leading up to his termination. “Our company was forward-thinking and embraced AI early on,” he explained. “Within the first year of ChatGPT’s release, developer productivity increased threefold to tenfold with AI assistance.” This surge in efficiency, however, foreshadowed a shift in the company’s approach.
“It became clear that business as usual wasn’t sustainable,” Shawn stated. His team was directed to prioritize integrating AI features into their existing software. Shortly after this pivot, amidst a wave of AI enthusiasm, the company initiated layoffs across multiple teams, including Shawn’s. While the exact percentage of developers affected remains unclear, Shawn confirmed the layoffs occurred around the same time across various departments.
While the direct cause of Shawn’s layoff is uncertain – MaagX contacted Virbela for clarification – the potential role of AI-driven automation cannot be ignored. The past two years have witnessed significant layoffs across the tech industry, often attributed to companies adopting automation strategies. Reports indicate software engineers at companies like Panasonic and Microsoft have lost their jobs as companies seek code-writing automation tools.
Shawn has chronicled his experience with job displacement on his Substack, ShawnfromPortland, detailing his struggles since the layoff. He reveals earning less than $200 a day through food delivery services and selling personal items on eBay. His situation is further complicated by property ownership. While owning multiple properties might suggest financial stability, Shawn explains that his mother, who is disabled, resides on one property and has no alternative housing. Selling the other properties, acquired during a more prosperous period, presents financial challenges in the current market. He currently resides in a small trailer on one of his properties in upstate New York.
“Something has shifted in society in the last 2.5 years,” Shawn writes, attributing his layoff and that of other developers to this shift, even though their company was performing well. He describes this phenomenon as the “great displacement,” an economic trend towards automation and away from human labor.
The irony is that AI also appears to be hindering Shawn’s job search. He suspects AI-powered resume screening tools are filtering out his applications due to a lack of specific AI-related keywords. “I’ve interviewed with nearly 10 companies in the last year, reaching the fourth round twice and several second and third rounds, but haven’t received any offers,” he states. “I believe my resume is being flagged by automated systems because it doesn’t contain enough hyper-specific, cutting-edge AI terminology.”
To remain competitive, Shawn has dedicated significant time to studying AI, spending two to five hours daily consuming AI-related news, research papers, and podcasts. He has also developed several small AI-generated codebases for personal learning. Despite these efforts, his job applications, nearing 900, have yet to yield an offer.
“I’m not sharing my story for sympathy,” Shawn clarifies. “I want to highlight how I transitioned from a highly valued technologist to practically nothing in a year or two due to the rise of AI.” He emphasizes the grim reality of the current software job market, stating, “I’ve been in this field for a long time, and the atmosphere has never been like this.”
Shawn’s concluding remarks are ominous: “I don’t believe my story is unique. I think I’m at the beginning of a coming social and economic tidal wave that started with knowledge workers and creatives. It’s coming for everyone eventually.”
