In an industry still grappling with the full implications of AI on the future of work, Amjad Masad, CEO of developer platform Replit, has offered one of the clearest and most grounded reflections on what it means to lose half your workforce, then come back stronger with AI.
“We didn’t ‘recently’ do a cut,” Masad wrote in a post on X. “We were failing a year ago, so had to do a layoff. Then even more quit. We got down to 50 percent before Agent launch and things took off.”
The comment came in response to a viral post describing how Replit laid off 50 percent of its team while publicly claiming that “AI isn’t replacing engineers, it’s supercharging them.” Masad’s response was frank. He shed light on a period of operational difficulty and offered a different narrative from the typical tech spin.
From Shrinking to Scaling
Masad’s candour about the company’s contraction stood in stark contrast to the optimism he expressed about its expansion.
“Despite being smaller, today we’re way more productive thanks to AI. But we’d rather grow the team and do more,” he wrote.
He did not stop there. In a follow-up post, Masad added:
“From my vantage point, I can put a thousand engineers to work today for all the expansion we can do.”
He referenced Jevons paradox, the economic principle that increasing efficiency often leads to greater overall consumption of a resource. In this case, it is engineering talent.
Masad’s point was clear. While Replit’s internal team became leaner and more productive thanks to AI, that productivity gain has opened the door to even greater ambition, not less.
What Is Replit Agent?
At the heart of Replit’s resurgence is Agent, the company’s AI-powered software creation tool. First launched in September 2024, and more recently brought to iOS in February 2025, Replit Agent allows developers to describe what they want in natural language and have working applications generated within minutes.
According to Replit’s official blog, Agent has already begun reshaping the developer experience:
“Now, with only a few sentences and a few minutes, our AI starts bringing your project to life in seconds.”
This model of AI-assisted software creation dramatically reduces friction for solo developers, startups, and product teams. It is not just about speed. It is about expanding who can build, and how they do it.
Sundar Pichai Endorses Replit and the Future of Vibe Coding
The momentum behind Replit Agent has caught the attention of major voices in global tech. In a recent interview clip shared by Amjad Masad, Google CEO Sundar Pichai shared enthusiastic praise:
“I was Vibe Coding with Replit a few weeks ago. I mean the power of what you’re going to be able to create on the web. We haven’t given that power to developers in 25 years.”
"I was Vibe Coding with Replit a few weeks ago. I mean the power of what you're going to be able to create on the web; we haven't given that power to developers in 25 years" — Sundar Pichai pic.twitter.com/Bbfi8I5WX8
That phrase, ‘Vibe Coding‘ is now shorthand for the creative freedom Replit enables. Developers are no longer stuck navigating configuration files, deployment hurdles, or endless boilerplate. They can build fluidly, intuitively, and with near-instant feedback.
What Agent unlocks is not just productivity. It is rhythm, flow, and a return to the joy of making things. For Pichai, whose leadership has shaped some of the world’s most influential platforms, calling Replit the biggest shift in developer empowerment in two and a half decades is a rare endorsement. It underscores just how radical the shift really is.
Layoffs, AI, and the Myth of Replacement
The Replit story is a pointed reminder that AI is not replacing jobs in a linear way. It is reframing the relationship between human skill and scale. In Masad’s words, the company did not shrink to cut costs. It shrank because it was struggling, then stabilised and grew by integrating AI where it mattered most.
What is different now is that Replit wants to hire again. And not just cautiously. The CEO says he could easily put 1,000 engineers to work today if the right talent came knocking.
For a platform that once catered to scrappy indie developers and high school coders, Replit is now positioning itself as a foundational layer for the next generation of software creation, powered by a human and AI hybrid workforce.
What This Means for the Future of Work
Masad’s posts also underline a bigger question that remains unanswered. What is the macroeconomic impact of AI on engineering jobs?
While he admits he is “not sure about the macro effect,” his vantage point from Replit tells a different story from most AI narratives. It is not about shrinking workforces. It is about needing more talent than ever, but armed with tools that amplify their capacity.
If Jevons paradox holds true, then Replit’s trajectory may not be the exception. It may be the signal of a larger shift already underway.
More output. More engineers. And AI, not as a threat, but as a multiplier.
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