The future of engineering: fewer people, more work, and the end of tokenmaxxing | Sifted

At the Sifted Summit, industry leaders said engineering teams are shrinking as AI tools improve, with speakers including Tessl founder Guy Podjarny and Sifted editor Amy Lewin framing the shift around “fewer people, more work, and the end of tokenmaxxing.” The discussion centered on leaner technical teams replacing headcount growth as the proof point investors once sought in large engineering organizations. Speakers argued that AI is changing how engineering work is scoped and valued, pushing companies to measure output and efficiency rather than raw token consumption. The shift matters because it could reshape hiring, startup valuations and how VC firms assess technical talent. What to watch next is whether smaller teams can sustain product velocity and whether investors formally adopt lean engineering as a valuation signal.